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

 


NZ dollar slips vs. Aussie after RBA seen softening language

NZ dollar slips vs. Aussie after RBA seen softening language around high currency

By Tina Morrison

July 2 (BusinessDesk) - The New Zealand dollar slipped against its Australian counterpart after the Reserve Bank of Australia didn't complain about the elevated level of the Aussie yesterday as much as expected, encouraging traders to push it higher.

The kiwi touched a week low of 92.29 Australian cents, and was trading at 92.38 cents at 8am in Wellington from 92.75 cents at 5pm yesterday. The local currency rose to 87.71 US cents from 87.67 cents yesterday after failing to break through 88 cents with a high of 87.91 cents.

The Australian dollar outperformed other major currencies overnight, rising above 95 US cents for the first time since November. Australia's central bank yesterday kept its benchmark interest rate at 2.5 percent as expected but didn't complain about the high level of the currency as much as expected, lamenting that the currency was high by historical standards, particularly given declines in key commodities and was offering less assistance in achieving balanced growth.

"It's essentially them saying the high Aussie dollar is a nuisance. They are not even saying it is a threat or that they are prepared to do anything about it," said Peter Cavanaugh, client adviser at Bancorp Treasury Services. "They have toned down their language a little bit and in the current environment with the global hunt for yield it gave the Australian dollar a boost."

Also underpinning the Aussie, reports on Chinese manufacturing yesterday printed stronger than expected, boosting optimism about exports to the country's largest trading partner.

Weighing on the kiwi, dairy product prices fell to the lowest level since January 2013 in Fonterra Cooperative Group's latest GlobalDairyTrade auction overnight. The GDT price index fell 4.9 percent to US$3,595 a tonne, the ninth decline in the last 10 auctions.

Today, the focus will be on the ANZ Commodity Price Index scheduled for release at 1pm.

The kiwi touched a week low of 51.02 British pence after a better-than-expected UK Manufacturing Purchasing Managers' Index boosted expectations the Bank of England may have to hike rates sooner than anticipated. The local currency was trading at 51.14 British pence at 8am from 51.24 pence yesterday.

The New Zealand dollar advanced to 64.13 euro cents from 64.05 cents yesterday after the Eurozone PMI fell to 51.8 in June from 52.2 in May and its lowest level since November.

The local currency rose to 89.07 yen from 88.92 yen after the Tankan survey of Japanese business conditions showed weakness in the nation's economy, fuelling speculation the Bank of Japan will ease policy further. The trade-weighted index was recently little changed at 81.23 from 81.25 yesterday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Igniting The Spark: Bringing The Digital Enabler To Life

Changing a name is, relatively speaking, the easy part of a re-invention. Changing a culture, getting all the ducks in a row, turning yourself inside-out to become customer-inspired is a much bigger challenge. More>>

ALSO:

Ebola And NZ: Targeted Screening At Airport But Risk Low

The risk of any cases of Ebola in New Zealand remains very low, but health and border authorities are well prepared... anyone arriving in New Zealand who in the last three weeks has visited countries affected will be screened for symptoms of the disease. More>>

ALSO:

Scoop Business: Brewer Seeking Crowd-Funding Cancels Shareholders’ Dividends

Shareholders in Renaissance Brewing company, the first business to seek equity through crowd-funding in New Zealand, have cancelled their claim on $147,000 of accumulated earnings “to make Renaissance a more attractive investment opportunity.” More>>

ALSO:

It's Spark Now:
Why Telecom Wanted To Change

New Zealand led the world when Chorus demerged from Telecom. It gave us a telecommunications industry structure where the network is completely separated from the products and services it delivers. The changes brought about a new market dynamic and it dramatically changed Telecom’s role. More>>

ALSO:

Glass Half Empty: Dairy Prices Fall To Lowest Since 2012

Dairy product prices slumped to the lowest level since October 2012 in the latest GlobalDairyTrade auction, paced by whole milk powder and cheddar. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news