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

 

NZ dollar holds near 3-month low

NZ dollar holds near 3-month low vs Aussie as RBA looks towards higher rates

By Rebecca Howard

May 15 (BusinessDesk) - The New Zealand dollar held near a three-month low against its Australian counterpart after minutes to the last Reserve Bank of Australia policy review showed the next move in interest rates is expected to be higher, putting it at odds with a more ambivalent RBNZ.

The kiwi traded at 91.77 Australian cents as at 5pm in Wellington from 91.80 cents at 8am, down from 92.15 cents yesterday. It was the lowest since early February. The kiwi dropped to 68.92 US cents from 69.61 cents late yesterday. That's the first dip below 69 since mid-December as the greenback remained in favour.

Australia's central bank signalled interest rates will remain at record lows for some time, however, "in the current circumstances, members agreed that it was more likely that the next move in the cash rate would be up, rather than down," according to the minutes from the May 1 monetary policy review. This contrasts with the Reserve Bank of New Zealand that said "the direction of our next move is equally balanced, up or down. Only time and events will tell."

The kiwi-Aussie cross is "still sliding" on the "divergence between the central banks," said Ross Weston, a senior trader at Kiwibank. That was exacerbated by a stronger relief rally for the Aussie now that fears of a global trade war have abated given that those concerns weighed more heavily on the Australian dollar, he said.

Looking ahead, Weston said Thursday's budget should be positive for the New Zealand dollar as the government's planned fiscal spend "isn't something that suggests the RBNZ should be cutting rates."

The trade-weighted index fell to 72.11 from 72.62.

The kiwi fell to 57.84 euro cents from 58.21 cents yesterday and dropped to 4.3742 yuan from 4.4122 yuan. It fell to 50.89 British pence from 51.32 pence and declined to 75.74 yen from 76.14 yen.

New Zealand's two-year swap rate rose 1 basis point to 2.19 percent while 10-year swaps lifted 3 basis points to 3.16 percent.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

'Unprecedented' Conditions: Genesis Coal Burn 5-Yr High

Coal-fired generation from Genesis Energy’s Huntly operations was the highest in more than five years in the December quarter, as a combination of low hydro storage and plant outages were compounded by tight natural gas supplies. More>>

ALSO:

Climate Summary: NZ’s Equal-2nd Warmest Year On Record

Annual temperatures were above average (+0.51°C to +1.20°C above the annual average) across the majority of New Zealand... 2018 was the equal 2nd-warmest year on record for New Zealand, based on NIWA’s seven-station series which began in 1909. More>>

ALSO:

GDP: Economic Growth Dampens In The September Quarter

Gross domestic product (GDP) rose 0.3 percent in the September 2018 quarter, down from 1.0 percent in the previous quarter, Stats NZ said today... GDP per capita was flat in the September 2018 quarter, following an increase of 0.5 percent in the June 2018 quarter. More>>

ALSO:

Up $1.20: $17.70 Minimum Wage For 2019

Coalition Government signals how it will move toward its goal of a $20 p/h minimum wage by 2021... “Today we are announcing that the minimum wage will increase to $17.70 an hour on 1 April 2019." More>>

ALSO: