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

 


NZ dollar drops to six-month low vs. Aust as growth speeds

NZ dollar drops to six-month low vs. Aust as growth accelerates across the Tasman

By Paul McBeth

Jun. 4 (BusinessDesk) - The New Zealand dollar fell to a six-month low against its trans-Tasman counterpart after figures showed an improving Australian economy, on growing exports and accelerating home building. The kiwi tumbled against Papua New Guinea's kina.

The kiwi fell as low as 90.70 Australian cents, trading at 90.73 cents at 5pm from 91.25 cents yesterday. It fell to 84.12 US cents from 84.27 cents at 8am and 84.59 cents yesterday.

Australia's economy grew 1.1 percent in the first three months of the year, beating the 0.9 percent growth forecast in a Bloomberg survey. Growth across the Tasman was underpinned by iron ore exports, and low interest rates fuelling increased house building.

The Reserve Bank of Australia yesterday kept the key rate unchanged at 2.5 percent, while saying signs of growth weren't enough to stoke inflation.

"The market's long on kiwi crosses, and it's a continuation of the unwinding," said Tim Kelleher, head of institutional FX sales New Zealand at ASB Institutional in Auckland, referring to the position where an investor bets an asset will appreciate. "I wouldn't get too carried away, the kiwi's at the bottom end of the range."

Papua New Guinea's kina soared 18 percent after reports the central bank introduced new trading restrictions following a steady decline in the Pacific island's currency. The kiwi sank to 2.0007 kina at 5pm in Wellington from 2.3237 at midday.

New Zealand's currency dropped to a three-month low after dairy prices tumbled at Fonterra Cooperative Group's latest auction. Weak dairy prices also drove local commodity prices down last month, according to a bank survey.

Government figures today showed New Zealand house building activity was near a 12-year high in the first three months of the year, as growing construction intentions were converted into actual work. A housing shortage in Auckland and the rebuild of Christchurch are seen as the major drivers for New Zealand's economic growth this year.

The local currency fell to 61.79 euro cents from 62.17 cents yesterday ahead of tomorrow’s European Central Bank meeting where monetary policy is expected to be loosened.

The kiwi dropped to 50.30 British pence from 50.50 pence yesterday and declined to 86.37 yen from 86.55 yen.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

ETS Review: Modelling Documents Released

Three technical documents are being released to help New Zealanders engage with the Emissions Trading Scheme (ETS) review, Climate Change Minister Paula Bennett says. More>>

ALSO:

Northland: Govt Plan Targets Transport, Web, Maori Assets

The government has released a 10-year plan to attract investors and lift economic growth in Northland, a region that perennially underperforms the rest of the country even while being endowed with natural beauty, productive land, minerals, a potential workforce, scope for manufacturing, forestry and aquaculture, and proximity to Auckland. More>>

ALSO:

Statistics: Unemployment Rate Falls To 5.3 Percent

The unemployment rate fell to 5.3 percent in the December 2015 quarter (from 6.0 percent), Statistics New Zealand said today. This is the lowest unemployment rate since March 2009. There were 16,000 fewer people unemployed than in the September ... More>>

ALSO:

Employment: Labour Urges Talley’s To End AFFCO Lockout

Labour has urged Talley’s to resolve the ongoing industrial dispute with AFFCO workers which is having a severe effect on the employees, their families and their communities, Labour’s Workplace Relations spokesperson Iain Lees-Galloway says. More>>

ALSO:

Three Kings: Govt To Oppose Appeal Blocking $1.2B Auckland Housing Plan

Environment Minister Nick Smith and Housing New Zealand have joined legal proceedings in support of Auckland Council and Fletcher Building opposing a bid by community groups to only allow low-rise housing in a $1.2 billion housing redevelopment on the disused site of the Three Kings quarry. More>>

ALSO:

Transport: Jetstar Expands Regional Network With Three New Routes

More New Zealanders than ever before will have access to Jetstar’s affordable flights when new services take off today from Auckland to New Plymouth and Palmerston North, and Nelson to Wellington. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news