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

 

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Export Values Down: NZ Posts Biggest Annual Trade Deficit In 7 Years

New Zealand has recorded its biggest annual trade deficit since April 2009, reflecting weaker prices of agricultural commodities such as dairy products, beef and lamb, and increased imports of vehicles and machinery. More>>

ALSO:

Currency Events: NZ's New $5 Note Wins International Banknote Award

New Zealand’s new Brighter Money $5 note has been named Banknote of the Year in a prestigious international competition. The $5 note was awarded the IBNS Banknote of the Year title at the International Bank Note Society’s annual meeting. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news