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

 

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Commerce: Supermarket Inquiry Finds No Breaches By Countdown

The Commerce Commission inquiry into anti-competitive behaviour by Countdown supermarkets, alleged by former Labour Party MP Shane Jones, has found nothing to warrant prosecution, although it warns supermarkets to take care in the way they communicate... More>>

ALSO:

Crown Accounts: English Flags ‘Challenge’ To Budget Surplus

Finance Minister Bill English is warning next month’s half yearly fiscal and economic update from the Treasury may not forecast a budget surplus, saying that returning the government’s accounts to surplus in 2015 will be “a challenge”, given the decline in commodity prices and weak global inflation. More>>

ALSO:

March 2015: Netflix To Launch In Australia And New Zealand

World’s Leading Internet Television Network to Offer Original Series, Movies, Documentaries, Stand-Up Comedy Specials and TV Shows for Low Monthly Price More>>

ALSO:

Price Of Cheese (Is Up): Dairy Product Prices Fall To Five-Year Low

Dairy product prices fell in the latest GlobalDairyTrade auction to the lowest level in more than five years, led by declines in rennet casein and skim milk powder. More>>

ALSO:

Gordon Campbell: On The Australians Scoring Trade Points Against Us With The Chinese

It hasn’t been a great year for Trade Minister Tim Groser... To top it off, Australia has just signed a FTA with China that has far better provisions on dairy exports than what New Zealand currently enjoys in our own FTA with China. More>>

ALSO:

Iwi & Local Consultation: Oil And Gas Block Offer 2015 Begins

Energy and Resources Minister Simon Bridges today announced the start of the Block Offer 2015 process for awarding oil and gas exploration permits. More>>

Industrial Action: Stats NZ Throwing Public Money Away Duplicating Data

The Public Service Association (PSA) says Statistics NZ are throwing money away by collecting the same data twice for official statistics such as the Consumer Price Index... As part of the ongoing industrial action, field interviewers who are PSA members are continuing to collect data, but are not sending it through to Statistics NZ. More>>

ALSO:

Other Stats:

Space: Rosetta's 'Philae' Makes Historic First Landing On A Comet

After more than a decade traveling through space, a robotic lander built by the European Space Agency has made the first-ever soft landing of a spacecraft on a comet. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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