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

 

Economic Update: RBNZ Says Rate Cut Seems Likely

The Reserve Bank will likely cut interest rates further as a persistently strong kiwi dollar makes it difficult for the bank to meet its inflation target, it said. The local currency fell. More>>

ALSO:

House Price Action Plan: RBNZ Signals National Lending Restrictions

The central bank wants to cap bank lending to property investors with a deposit of less than 40 percent at 5 percent and restore the 10 percent limit for owner-occupiers wanting to take out a mortgage with a deposit of less than 20 percent, according to a consultation paper released today. More>>

ALSO:

Sparks Fly: Gordon Campbell On China Steel Dumping Allegations

No doubt, officials on the China desk at MFAT have prided themselves on fashioning a niche position for New Zealand right in between the US and China – and leveraging off both of them! Well, as the Aussies would say, of MFAT: tell ‘em they’re dreaming. More>>

ALSO:

Loan Sharks: Finance Companies Found Guilty Of Breaching Fair Trading Act

Finance companies Budget Loans and Evolution Finance, run by former 1980s corporate high-flyer Allan Hawkins, have been found guilty of 106 charges of breaching the Fair Trading Act for misleading 21 borrowers while enforcing loan contracts. More>>

ALSO:

Post Panama Papers: Govt To Adopt Shewan's Foreign Trust Recommendations

The government will adopt all of the recommendations from former PwC chairman John Shewan to increase disclosure and introduce a register for foreign trusts with new legislation to be introduced next month. More>>

ALSO:

The Price Of Cheese: Cheddar At Eight-Year Low

Food prices decreased 0.5 percent in the year to June 2016, influenced by lower grocery food prices (down 2.3 percent), Statistics New Zealand said today. Compared with June 2015, cheese prices were down 9.5 percent, fresh milk was down 3.9 percent, and yoghurt was down 9.2 percent. More>>

ALSO:

Financial Advisers: New 'Customer-First' Obligations

Goldsmith plans to do away with the current adviser designations which he says have been "unsatisfactory" in that some advisers are obliged to disclose potential conflicts of interest and act in their customers' best interests, but others are not. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news