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

 

Tubes: Tasman Global Access Cable Goes Live

Spark, Vodafone and Telstra have today announced the Tasman Global Access (TGA) cable is officially in service and ready to carry vast quantities of Internet traffic between New Zealand and the world. More>>

ALSO:

Theresa Does: Brexit Letter Sees NZD Touch Week-High Vs GBP On Brexit

The New Zealand dollar rose to a week-high against the British pound and euro after UK Prime Minister Theresa May officially triggered Britain's exit from the European Union. More>>

ALSO:

Statistics: Business Research And Development Up 29 Percent

Computer services and machinery manufacturing firms led the way in an almost 30 percent lift in business spending on research and development (R&D) in 2016, Stats NZ said today. Businesses spent $1.6 billion on R&D in 2016, up $356 million (29 percent) from 2014. More>>

ALSO:

China Shopping: NZ-China FTA Upgrade Agreed Among Slew Of New Deals

New Zealand Prime Minister Bill English and China Premier Li Keqiang signed off a series of cooperation deals spanning trade, customs, travel and climate change and confirmed commencement of official talks on an upgrade to the nine-year old free-trade agreement between the two countries. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news