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

 


NZ dollar gains vs. A$ after debt rating warning, RBA

NZ dollar gains vs. Australian dollar after debt rating warning, RBA minutes

May 20 (BusinessDesk) – The New Zealand dollar gained against its Australian counterpart after Standard & Poor’s warned that country could lose its AAA debt rating unless the A$49.9 billion budget deficit is reined in and after its central bank signalled interest rates would remain low.

The New Zealand dollar rose to 92.64 Australian cents from 92.42 cents at 8am and from 92.28 cents late yesterday. The kiwi was little changed from the start of the day at 86.13 US cents and down from 86.34 cents yesterday.

Minutes of the Reserve Bank of Australia’s May 6 meeting showed the central bank deemed current low interest rates, with its benchmark cash rate at 2.5 percent, “was likely to be appropriate for some time yet.” The minutes were released after a sovereign analyst at S&P was quoted in Australian media saying that nation’s top credit rating could be reviewed unless the Abbott government made good on its proposed spending cuts, which are opposed by opposition parties.

“Australian dollar weakness might be attributable to S&P’s warning shot last night that if they do not sort out the budget deficit they might lose their AAA rating,” said Mark Johnson, a senior client adviser at OMF. “That’s keeping pressure on that currency.”

The kiwi traded at 62.80 euro cents, little changed from the start of the day and down from 63 cents yesterday.

Johnson said markets widely expect the European Central Bank to deliver a package of policy options at its June 5 meeting that would include interest rate cuts and possibly negative deposit rates and give investors less reason to hold the euro.

“Euro weakness would translate into US dollar strength and add to pressure on currencies like the Aussie and the kiwi,” he said.

The kiwi traded at 87.49 yen from 87.42 yen at 8am in Wellington and down from 87.60 yen yesterday. It was little changed at 51.25 British pence. The trade weighted index was little changed at 80.20.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Media: Fairfax Moves To Create Modern Newsroom

Fairfax Media New Zealand continues its newsroom transformation this week, with a proposal to further organise its editorial operations into focused, local teams and specialist national topic areas. More>>

ALSO:

Dairy: Fonterra Forecast For 2015/16 Season

Fonterra Co-operative Group Limited has today reduced its forecast Farmgate Milk Price for the 2014/15 season to $4.40 per kgMS. Along with its previously announced forecast dividend range of 20-30 cents per share, the change amounts to a forecast ... More>>

ALSO:

BusinessDesk: SkyCity Lifts Minimum Convention Centre Investment To $430M

SkyCity Entertainment Group, the casino operator, has lifted the minimum it will invest in the Auckland International Convention Centre to $430 million and said total costs including land may be $450 million to $470 million. More>>

Statistics: Drop In Dairy Prices Leads Fall In Exports

Total goods exports fell $240 million (5.5 percent) to $4.2 billion in April 2015 compared with April 2014, Statistics New Zealand said today. More>>

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>


BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>

BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news