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

 

Strike: Lyttelton Port Workers Vote To Escalate Dispute

Members of the Rail and Maritime Transport Union (RMTU) at Lyttelton Port today voted to escalate their industrial action. Around 200 RMTU members have been operating an overtime ban since 17 December and today they endorsed a series of full withdrawals of labour at the port. More>>

ALSO:

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

NASA, NOAA: Find 2014 Warmest Year In Modern Record

Since 1880, Earth’s average surface temperature has warmed by about 1.4 degrees Fahrenheit (0.8 degrees Celsius), a trend that is largely driven by the increase in carbon dioxide and other human emissions into the planet’s atmosphere. The majority of that warming has occurred in the past three decades. More>>

ALSO:

Scoop Business: New Zealand’s Reserve Bank Named Central Bank Of The Year

The Reserve Bank of New Zealand’s efforts to stifle house price inflation by using new policy tools has seen the institution named Central Bank of the year by Central Banking Publications, a publisher specialising in global central banking practice. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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