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

 


NZ dollar gains from 3-month low before Australian GDP, MPS

NZ dollar gains from 3-month low before Australian GDP, MPS

By Jonathan Underhill

June 3 (BusinessDesk) - The New Zealand dollar gained from a three-month low on speculation the kiwi will benefit along with the Australian dollar from what is expected to be stronger Australian economic growth data tomorrow.

The kiwi traded at 84.57 US cents at 5pm in Wellington from as low as 84.37 cents at the start of the day and from 84.68 cents late yesterday. The New Zealand dollar slipped to 91.29 Australian cents from 91.36 cents at 8am and from 91.45 cents yesterday.

Figures tomorrow will show the Australian economy expanded 1.1 percent in the first quarter, based on a Westpac Banking Corp forecast. That may help lift the Australian dollar and drag the kiwi up with it. Australia's central bank today kept its cash rate at a record low 2.5 percent while noticing some additional signs of growth in the economy of New Zealand's second-largest market. By contrast, the Reserve Bank of New Zealand is expected to hike its official cash rate to 3.25 percent at next week's monetary policy statement.

"A bit of a pop higher in the Aussie should carry the kiwi along with it," said Robert Rennie, Westpac's chief currency strategist in Sydney. "In the New Zealand economy, we're seeing lower dairy and business confidence but still record-breaking migration and that's an important part of the story. I'm not totally convinced that kiwi-Aussie continuing to fall into the MPS is totally valid."

The trade-weighted index slipped to 79.10 from 79.16 and didn't move much after government figures showed the terms of trade edged closer to an all-time high in the first quarter as dairy products led a gain in export prices and petroleum products led import prices lower.

The kiwi was little changed at 62.16 euro cents from 62.14 cents at the start of the day and edged lower to 50.50 British pence from 50.57 pence. It gained to 86.53 yen from 86.38 yen the previous day.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Revenue Renewal: Tax Modernisation Programme Launched

Revenue Minister Todd McClay today released the first two in a series of public consultations designed to modernise and simplify the tax system. More>>

ALSO:

Scoop Business:
NZ Puts Seven New Oil And Gas Areas Put Up For Tender

A total of seven new areas will be opened up to oil and gas exploration under its block offer tendering system, as the New Zealand government seeks to concentrate activity in a few strategically chosen areas. More>>

ALSO:

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news