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

 

Inequality: Top 10% Of Housholds Have Half Of Total Net Worth

The average New Zealand household was worth $289,000 in the year to June 2015, Statistics New Zealand said today. However wealth was not evenly distributed, with the top 10 percent accounting for around half of total wealth. In contrast, the bottom 40 percent held 3 percent of total wealth. More>>

ALSO:

What Winter? Temperature Records Set For June 20-22

The days around the winter soltice produced a number of notably warm tempertaures. More>>

Conservation Deal: New Kākāpō Recovery Partnership Welcomed

Conservation Minister Maggie Barry says the new kakapo recovery partnership between DOC and Meridian Energy is great news for efforts to save one of New Zealand’s most beloved birds. More>>

ALSO:

Tech Sector Report: Joyce Warns Asian Tech Investors View NZ As Hobbits And Food

Speaking in Wellington at the launch of a report showcasing the value of the technology sector to the New Zealand economy, Joyce said more had to be done to tell the country's technology stories overseas. More>>

ALSO:

Mediaglommeration: APN Gets OIO Approval For Demerger Plan

APN News & Media has received Overseas Investment Office approval for its plan to split out its NZME unit ahead of a potential merger with rival Fairfax Media's New Zealand operations. More>>

New Paper: Ninety-Day Trial Period Has No Impact On Firms' Hiring

The introduction of a 90-day trial period has had no impact on hiring by New Zealand companies although they are now in widespread use, according to researchers at Motu Economic and Public Policy Research. More>>

ALSO:

Corrections: Serco Exits Equity Stake, Remains As Operator

Serco has sold its equity stake in the company that holds the contract to design, build and run Wiri Prison in South Auckland but continues as sub-contractor to operate the facility. More>>

GDP: NZ Economy Grows Faster-Than-Forecast 0.7%

New Zealand's economy grew at a faster pace than expected in the first quarter of 2016 as construction expanded at the quickest rate in two years. The kiwi dollar jumped after the data was released. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news