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

 


NZ dollar heads for 1.3% weekly fall vs. Aussie

NZ dollar heads for 1.3% weekly fall vs. A$ as Australian economy picks up

By Paul McBeth

May 9 (BusinessDesk) - The New Zealand dollar is heading for a 1.3 percent weekly decline against its Australian counterpart as data this week shows an improving economy across the Tasman.

The kiwi fell to 92.21 Australian at 5pm in Wellington from 93.39 cents on Friday in New York, and 92.40 cents yesterday. The local currency declined to 80.36 US cents at 5pm from 86.52 cents at 8am and 86.58 cents yesterday.

This week the Reserve Bank of Australia kept the key rate at 2.5 percent, while acknowledging an improving labour market, credit growth and consumer spending. The upbeat assessment was reinforced by data showing strong jobs growth yesterday, while better than expected Chinese trade figures bolstered confidence about Australia’s largest export market.

“People are waking up to the fact that the Aussie economy is a little bit better than it looks,” said Tim Kelleher, head of institutional FX sales NZ at ASB Institutional in Auckland. “We expect the kiwi/Aussie cross to continue to drift off.”

The local currency is heading for a 0.4 percent fall against the greenback from 86.66 US cents on Friday in New York, while the trade weighted index is heading for a 0.2 percent weekly decline. The TWI was at 80.06 from 80.14 yesterday.

A BusinessDesk survey of 10 traders and strategists on Monday predicted the local currency would trade between 84.80 US cents and 88.40 cents this week. Six predicted the kiwi to fall this week, while two expected it to gain and two picked it to remain largely unchanged.

New Zealand’s Reserve Bank deputy governor Grant Spencer today said the central bank doesn’t expect to remove restrictions on low-equity home lending until at least late 2014 as the limits take demand out of the housing market. He also reiterated the view that future interest rate hikes will depend on the strength of the currency, which reduces the prices of imports and takes pressure off headline inflation.

Still, government figures today showed retail spending on credit and debit cards rose last month, with households confidence still elevated, and employment figures this week showed jobs growth wasn’t seeping into higher wages.

The local currency advanced to 62.38 euro cents at 5pm in Wellington 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 traded at 51.01 from 51.06 British pence after the Bank of England kept its benchmark rate unchanged yesterday. It fell to 87.80 yen from 88.15 yen yesterday.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news