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

 


NZ dollar extends drop vs. A$ after Australian CPI

NZ dollar extends drop vs. A$ after Australian inflation accelerates; RBNZ looms

By Paul McBeth

July 23 (BusinessDesk) - The New Zealand dollar extended its decline against its trans-Tasman counterpart after Australian government figures showed annual inflation accelerated to its fastest pace in four years, and ahead of the Reserve Bank of New Zealand's interest rate review tomorrow.

The kiwi fell to 91.97 Australian cents at 5pm in Wellington from 92.27 cents immediately before the report, and 92.36 cents yesterday. The local currency traded at 86.78 US cents at 5pm from 86.67 cents at 8am and 86.74 cents yesterday.

Australia's annual trimmed mean inflation rate increased to 2.9 percent in the June quarter, according to the Bureau of Statistics, and ahead of the 2.7 percent pace expected. The faster pace of consumer price increases reduces the likelihood of another rate cut by the Reserve Bank of Australia, and may diminish the yield advantage New Zealand has over its neighbouring nation.

"Aussie CPI was much stronger than expected," said Imre Speizer, market strategist at Westpac Banking Corp in Auckland. "We possibly may have seen the multi-year highs in that kiwi/Aussie cross."

The data comes ahead of tomorrow's monetary policy review by New Zealand's central bank. Governor Graeme Wheeler is expected to hike the official cash rate a quarter-point to 3.5 percent, the fourth increase since he embarked on tightening policy earlier this year in a bid to clamp down on inflationary pressures.

Westpac's Speizer said Wheeler will probably signal a pause in the tightening cycle at tomorrow's meeting, which might prompt some movement in the kiwi dollar, although "a lot of that is already priced in."

Finance Minister Bill English reiterated his view the kiwi is "unsustainably high" telling BusinessDesk on the sidelines of a Trans-Tasman Business Circle lunch in Wellington that "almost anyone who has looked at it comes to the conclusion it's somewhere 10 to 15 percent overvalued."

The trade-weighted index was little changed at 80.81 from 80.77 yesterday. The local currency gained to 64.45 euro cents at 5pm in Wellington from 64.13 cents yesterday, and traded at 50.82 British pence from 50.78 pence. It was little changed at 87.99 yen from 88.01 yen yesterday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news