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

 

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news