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: Alex Swney Pleads Guilty To $2.5M Fraud Charge

Alex Swney, former chief executive of the Auckland city centre business association Heart of the City, has pleaded guilty to dishonestly using documents to obtain $2.5 million. More>>

ALSO:

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Scoop Business: NZ Broadcasters Launch Battle Against Global Mode ISPs

New Zealand broadcasters have confirmed they’ve launched legal proceedings against internet service providers who give customers’ access to “global mode”, which allows customers access to offshore online content, claiming it breaches the local content providers’ copyright. More>>

ALSO:

Sanford: Closure Of Christchurch Mussel Processing Plant Confirmed

The decision comes after a period of consultation with the 232 staff employed at the Riccarton site, who were told on 9 April that Sanford was considering the future of mussel processing in Christchurch. Recent weather patterns had impacted on natural spat (offspring) supply... More>>

ALSO:

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Scoop Business: Reserve Bank’s Spencer Calls On Govt To Rethink Housing Tax

The Reserve Bank has urged the government to take another look at a capital gains tax on investment in housing, allow increased high-density development and cut red tape for planning consents to address an over-heated Auckland property market. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news