October 19 edition of the BNZ Weekly Overview.
The Kiwi dollar has risen slightly against the greenback this week with the markets factoring in an increased expectation that the Reserve Bank will raise its official cash rate next Thursday morning. However we have lost about one cent against the Australian currency as reduced worries about slowing United States economic growth have led to improved prospects for commodity prices which are a key determinant of movements in the Aussie dollar. Wholesale interest rates have increased slightly over the week.
Economic data released during the week show the housing market still easing off at a very gradual rate while in contrast farm sales are declining sharply.