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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Postnatal Depression: 'The Thief That Steals Motherhood' - Alison McCulloch

Post-natal depression is a sly and cruel illness, described by one expert as ‘the thief that steals motherhood’, it creeps up on its victims, hiding behind the stress and exhaustion of being a new parent, catching many women unaware and unprepared. More>>


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Health: New Zealand's First ‘No Sugary Drinks’ Logo Unveiled

New Zealand’s first “no sugary drinks logo” has been unveiled at an event in Wellington... It will empower communities around New Zealand to lift their health and wellbeing and send a clear message about the damage caused by too much sugar in our diets. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news