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

 


NZ dollar drops near six week low vs. Aussie

NZ dollar drops near six week low vs. Aussie after RBA's Stevens stays mum on currency

By Tina Morrison

July 23 (BusinessDesk) - The New Zealand dollar touched its lowest in almost six weeks against the Australian dollar after Australian Reserve Bank governor Glenn Stevens refrained from commenting on its high currency in an annual speech he has previously used to talk it down.

The kiwi touched 92.06 Australian cents overnight, its lowest level since June 13, and was trading at 92.25 cents at 8am in Wellington, from 92.36 cents at 5pm yesterday. The local currency slipped to 86.67 US cents from 86.74 cents yesterday, trading between 86.50 cents and 86.96 cents as investors take positions ahead of the Reserve Bank interest rate decision tomorrow.

The Australian dollar advanced after the RBA's Stevens, speaking at an Anika Foundation luncheon in Sydney on challenges for economic policy, didn't make any negative comments about the elevated currency after saying recently he would steer away from trying to jawbone the currency lower.

"The previous year he talked the Aussie down and it dropped 100 points during that lunch, this year he didn't mention the currency at all," said OMF foreign exchange senior dealer Martin Rudings. "He's given up jawboning the currency down, using those cheap shots while he's at an organised luncheon. The market has taken that as he has given up trying to talk the currency down and the market is free to do what they like with it, so it was a positive for the Aussie."

OMF's Rudings said some traders may also be favouring the Aussie over the kiwi amid uncertainty about whether the RBNZ will hike rates tomorrow or pause on signs the economy may be slowing.

"Aussie might be getting a bit of support here as well as people are selling kiwi and buying Aussie," Rudings said. "I suspect that is a bit of positioning ahead of tomorrow's RBNZ. There is probably a greater risk that they don't raise rates in this meeting."

Today, Australia will publish data on second quarter inflation and tonight the Bank of England minutes from its last meeting will be released.

The New Zealand dollar slipped to 87.93 yen from 88.01 yen yesterday, advanced to 64.35 euro cents from 64.13 cents and was little changed at 50.79 British pence from 50.78 pence. The trade-weighted index was unchanged at 80.77.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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