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

 


NZ dollar slips vs. Australian dollar after RBA statement

NZ dollar slips vs. Australian dollar on lack of strong RBA statement

By Jonathan Underhill

July 1 (BusinessDesk) - The New Zealand dollar fell against the Australian dollar as traders betting the Reserve Bank of Australia would make a strong statement about an over-valued currency were forced to close out their bets when it didn't.

The New Zealand dollar fell to 92.76 Australian cents, from 92.94 Australian cents immediately before the RBA statement and from 92.86 cents the previous day. The kiwi dollar rose to 87.71 US cents from 87.52 cents.

RBA governor Glenn Stevens said in his statement on monetary policy that the Australian dollar "remains high by historical standards, particularly given the declines in key commodity prices, and hence is offering less assistance than it might in achieving balanced growth in the economy," a change from last month's statement, when he said a weaker currency was assisting in achieving balanced growth in the economy.

Helping underpin confidence in both the kiwi and Australian dollars, two gauges of Chinese manufacturing showed expansion in June, with the official purchasing managers' index at 51.

"The market was expecting stronger language around the currency," said Imre Speizer, senior market strategist at Westpac Banking Corp. "People would have shorted (the Australian dollar against the greenback) going into the statement and didn't get the result so they've closed things out."

He said the kiwi dollar probably won't move much ahead of US non-farm payrolls on Thursday, a day earlier than usual because of a public holiday in America. Consensus is that the world's biggest economy added in the low 200,000s.

"The market is overwhelmingly expecting a decent number so if it is a slightly indecent number" could see the greenback sold off, he said.


The New Zealand dollar rose to 64.10 euro cents from 63.91 cents at 8am and from 64.13 cents yesterday. It traded at 51.27 British pence, from 51.40 pence yesterday and was at 88.94 yen from 88.64 yen. The trade-weighted index was little changed at 81.25.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

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:

Scoop Business: NZ-Korea FTA Signed Amid Spying, Lost Sovereignty Claims

A long-awaited free trade agreement between New Zealand and South Korea has been signed in Seoul by Prime Minister John Key and the Korean president, Park Geun-hye. More>>

ALSO:

PM Visit: NZ And Viet Nam Agree Ambitious Trade Target

New Zealand and Viet Nam have agreed an ambitious target of doubling two-way goods and service trade to around $2.2 billion by 2020, Prime Minister John Key has announced. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news