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

 


Improving Aussie outlook pushes NZ dollar to week low

Improving Aussie outlook pushes NZ dollar to week low against $A

By Tina Morrison

May 9 (BusinessDesk) – The New Zealand dollar dropped to its lowest in more than a week against the Australian currency on improving economic prospects across the Tasman.

The kiwi touched 91.91 Australian cents early this morning, its lowest level since April 28, and was trading at 92.21 cents at 8am in Wellington, from 92.40 cents at 5pm yesterday. The local currency edged lower to 86.52 US cents from 86.58 cents yesterday.

The Australian dollar strengthened after a report showed the Australian jobs market continued to improve with more jobs added than expected in April, bolstering sentiment about Australia's economy.

The Aussie got a further lift from better than expected Chinese trade figures, boosting optimism about the nation’s largest export market. The data pushed the Aussie to a three-week high of 93.94 US cents overnight.

“The Aussie was the star of the show in currency markets…as the unit pushed its way towards the 94 (US cents) figure,” Boris Schlossberg, managing director of foreign exchange strategy at BK Asset Management in New York, said in a note. “The double whammy of upside surprises provided a serious boost for the Aussie.”

The Reserve Bank of Australia this week kept its cash rate unchanged at 2.5 percent, as expected, and maintained its view that the best policy setting is to maintain stability in interest rates.

The Aussie’s “recent rise will no doubt be viewed with concern by the RBA, but given the markedly improved fundamental background, the monetary authorities in Sydney will have a difficult time keeping policy accommodative if labour demand continues to strengthen,” Schlossberg said.

The Aussie remains capped at 94 US cents, but a break above this level could see it heading towards 95 cents, Schlossberg said.

At 1:30pm New Zealand time today, the Reserve Bank of Australia publishes its Statement on Monetary Policy following its May 6 meeting. Traders will be watching for any changes to the bank’s view on employment following yesterday’s better data.

RBA assistant governor Guy Debelle also speaks today as part of a panel.

The New Zealand dollar was little changed following an 8:30am speech by New Zealand Reserve Bank deputy governor Grant Spencer on the housing market, where he signalled limits on high debt mortgage lending, introduced in October 2013, won’t be lifted before late in the year, at the earliest.

Later this morning, Statistics NZ will release data on electronic card spending for April and the latest Crown financial statements will also be published.

The New Zealand dollar advanced to 62.44 euro cents from 62.22 cents yesterday after European Central Bank President Mario Draghi signalled a potential interest rate cut next month. The ECB kept its key interest rate steady at a record low 0.25 percent as expected but suggested it might lower it in June if needed.

The kiwi was unchanged at 51.06 British pence after the Bank of England kept its benchmark rate unchanged yesterday. The local currency slipped to 87.87 yen from 88.15 yen yesterday while the trade-weighted index dipped to 80.09 from 80.14.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: PayPal Stops Processing Mega Payments; NZX Listing Still On

PayPal has ceased processing payments for Mega, the file storage and encryption firm looking to join the New Zealand stock market via a reverse listing of TRS Investments, amid claims it is not a legitimate cloud storage service. More>>

ALSO:

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Fruit & Veg Crackdown: Auckland Fruit Fly Find Under Investigation

The Ministry for Primary Industries (MPI) is investigating a find of a single male Queensland fruit fly in a surveillance trap in the Auckland suburb of Grey Lynn... MPI has placed legal controls on the movement of fruit and some vegetables outside of a defined circular area which extends 1.5km from where the fly was trapped in Grey Lynn. More>>

ALSO:

Scoop Business: Westpac NZ Reaches $2.97M Swaps Settlement

Westpac Banking Corp’s New Zealand unit has agreed to pay $2.97 million in a settlement with the Commerce Commission over the way the bank sold interest rate swaps to farmers between 2005 and 2012. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news