Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


NZ dollar tracks A$ after RBA sees keeps rates on hold

NZ dollar tracks A$ after RBA sees signs of life, keeps rates on hold

By Paul McBeth

May 6 (BusinessDesk) - The New Zealand dollar was in lock-step with its trans-Tasman counterpart after the Reserve Bank of Australia kept the country’s key rate on hold, while acknowledging signs of life in the economy.

The kiwi traded at 93.66 Australian cents at 5pm in Wellington from 93.67 cents before the statement, up from 93.42 cents yesterday. The kiwi edged up to 86.90 US cents at 5pm from 86.86 cents at 8am from 86.57 cents yesterday.

The RBA kept the target cash rate at 2.5 percent, as expected, and kept its view rates will remain unchanged for a period of time. Governor Glenn Stevens kept his view the Australian dollar was high by historical standards, without trying to talk it down further, and acknowledged improvements in the labour market, credit growth and consumer demand. The Australian dollar was little changed at 92.81 Australian cents.

“It was slightly upbeat on the economy, noticing an improvement in the labour market, but said it would be some time before the unemployment rate fell substantially,” said Imre Speizer, market strategist at Westpac Banking Corp in Auckland. “On the kiwi/Aussie cross, the recent trend is a resumption of the old trend in that the cross goes higher and I don’t think this RBA statement was strong enough in the positive direction to disturb that.”

Government figures earlier today showed Australia’s trade surplus was smaller than expected at a seasonally adjusted A$731 million in March, against expectations of A$1 billion.

Traders will be watching the dairy auction on Fonterra Cooperative Group’s GlobalDairyTrade platform tomorrow to see whether prices continue to fall, ahead of a speech by New Zealand Reserve Bank governor Graeme Wheeler on the significance of dairy to the economy. Employment figures later in the day will also be watched.

The local currency gained to 88.67 yen at 5pm in Wellington from 88.23 yen yesterday, and gained to 62.61 euro cents from 62.38 cents. It increased to 51.44 British pence from 51.30 pence yesterday. The trade-weighted index advanced to 80.71 from 80.42 yesterday.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: NZ Dollar Catches Breath After "Goldilocks" Slump

The New Zealand dollar edged up following its dramatic slump yesterday after the Reserve Bank confirmed speculation it intervened in the currency market last month and PM John Key suggested a “Goldilocks” level far lower than at present. More>>

ALSO:

Biosecurity: Kiwifruit Claim To Hold Officials Accountable For Psa

Kiwifruit growers have joined forces to hold Biosecurity NZ accountable in the courts for its negligence in allowing 2010’s Psa outbreak that devastated New Zealand’s kiwifruit industry and exports. Foundation claimants representing well ... More>>

ALSO:

Poison: Anglers Advised Not To Eat Trout In 1080 Areas

With the fishing season opening in just a few days (1 October 2014), anglers are being warned by the Department of Conservation(DOC) not to eat trout from pristine backcountry waters and their downstream catchments, where the department is conducting 1080 poisoning operations. More>>.

ALSO:

Quotas: MPI Swoop On Suspected Fraudulent Fishing Activity

Ministry for Primary Industries (MPI) compliance officers swooped on a Hawkes Bay fishing enterprise today to secure evidence in an investigation into suspected fraudulent activity... “The investigation involves activity throughout the commercial supply chain – catching, landing, processing and exporting.” More>>

ALSO:

Scoop Business: Fonterra Slashes 2015 Milk Payout, Earnings Tumble 76%

Fonterra Cooperative Group cut its forecast 2015 milk price payout by about 12 percent, citing weaker global dairy prices and said there is a risk of further declines given strong global milk production. More>>

ALSO:

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news