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

 


NZ dollar little changed vs. A$ as RBA keeps rates on hold

NZ dollar little changed vs. A$ as RBA keeps rates on hold

By Paul McBeth

Sept. 2 (BusinessDesk) - The New Zealand dollar was little changed against its trans-Tasman counterpart after the Reserve Bank of Australia kept rates on hold, while becoming a little more pessimistic about the nation's labour market.

The kiwi traded at 89.77 Australian cents at 5pm in Wellington from 89.76 cents immediately before the release, and up from 89.62 cents yesterday. The kiwi fell to 83.48 US cents from 83.76 cents at 8am and 83.73 cents yesterday.

The RBA kept the target cash rate at 2.5 percent as expected, while governor Glenn Stevens said unemployment increased despite some improvement in other labour market measures. Stevens said the Australian dollar was fundamentally overvalued, having previously said it was high by historic standards. The Australian dollar was little changed at 92.98 US cents at 5pm in Wellington from 93.02 cents immediately before the release.

Both the trans-Tasman currencies came under pressure after Australian Bureau of Statistics figures revised up Australia's current account deficit in the first quarter, offsetting a smaller than expected shortfall in the second quarter.

"At the margins it (the RBA statement) was slightly more negative than positive," said Michael Johnston, senior dealer at HiFX in Auckland. "If I was an exporter, I would be looking to buy kiwi in the short-term in the low 83s, and anything approaching 84 is a sell."

New Zealand commodity prices fell for a sixth month, according to the ANZ Commodity Price index today, led by declining dairy prices, due in part to an oversupply in China. The survey comes ahead of Fonterra Cooperative Group's GlobalDairyTrade auction tomorrow, which is being watched as a gauge of New Zealand's economic strength, with dairy the nation's biggest export. Government figures yesterday showed the terms of trade unexpectedly rose 0.3 percent in second quarter, as a strong kiwi made imports cheaper and offset declines in export prices.

The local currency rose to 87.48 yen at 5pm in Wellington from 87.23 yen yesterday, and was little changed at 63.62 euro cents from 63.78 cents. It edged lower to 50.34 British pence from 50.44 pence. The trade-weighted index was at 79.03 from 79.10 yesterday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Post-Post: Brian Roche To Step Down As NZ Post CEO

Brian Roche will step down as chief executive of New Zealand Post in April 2017, having led the state-owned postal service's drive to adjust to shrinking mail volumes with a combination of cost cuts, asset sales, modernisation and expansion of new businesses. More>>

ALSO:

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Half Full: Fonterra Raises Forecast Milk Price

Fonterra Co-operative Group Limited today increased its 2016/17 forecast Farmgate Milk Price by 50 cents to $4.75 per kgMS. When combined with the forecast earnings per share range for the 2017 financial year of 50 to 60 cents, the total payout available to farmers in the current season is forecast to be $5.25 to $5.35 before retentions. More>>

ALSO:

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news