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

 

Half Empty: Fonterra's 2017 Opening Forecast Below Expectations

Fonterra Cooperative Group raised its forecast farmgate milk payout for next season by less than expected as the world's largest dairy exporter predicts lower prices will crimp production and supply will pick up. The New Zealand dollar fell. More>>

ALSO:

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news