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


NZ dollar slips vs. Australian dollar as RBA holds rates

NZ dollar slips vs. Australian dollar after RBA keeps rates on hold, clams up on outlook

By Paul McBeth

Sept. 3 (BusinessDesk) - The New Zealand dollar slipped against its trans-Tasman counterpart after the Reserve Bank of Australia kept its key interest rate on hold, while making no reference to having room to cut rates.

The kiwi fell to 86.62 Australian cents at 5pm in Wellington from 86.87 cents immediately before the release and 86.80 cents yesterday. The kiwi increased to 78.25 US cents at 5pm from 78.11 cents at 8am and 77.87 cents yesterday.

The RBA kept the target cash rate at 2.5 percent, with governor Glenn Stevens saying the looser monetary policy was supporting interest-sensitive spending and asset values, and more was expected. Household borrowing was still subdued, though the bank saw signs of increasing demand, and the RBA’s board will continue to adjust policy settings to foster growth and keep a lid on inflation, Stevens said.

“People are looking for the relative strength of the RBA’s easing bias and the RBNZ’s tightening bias,” said Chris Tennent-Brown, FX economist at Commonwealth Bank of Australia. “The MPS (monetary policy statement) and the RBA minutes would be of more influence on the cross rate.”

The Reserve Bank of New Zealand will publish its full monetary policy statement on Thursday next week, providing its first set of forecasts since rolling out macro-prudential tools to limit the level of low-equity home lending private lenders can write.

Today’s RBA meeting is the first of several central bank reviews this week, including Europe, England, Japan and Canada.

Investors will be looking at US manufacturing figures in Washington on Tuesday when Wall Street re-opens after the Labor Day holiday yesterday.

“We could see the US dollar firm if we get decent data,” Tennent-Brown said.

The local currency rose to 77.81 yen at 5pm in Wellington from 76.77 yen yesterday and advanced to 59.33 euro cents from 58.98 cents. It gained to 50.31 pence from 50.06 pence yesterday. The trade-weighted index increase to 74.21 from 73.86 yesterday.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Auckland Airport: North American Touch Downs Make AA Most Connected In Australasia
The return of American Airlines, the world’s largest airline, announced today has cemented Auckland Airport’s title as the Australasian airport with the most non-stop connections to the United States and Canada... More>>

Reserve Bank: Monetary Conditions Tighten By More And Sooner

The Monetary Policy Committee today increased the Official Cash Rate (OCR) to 2.0 percent. The Committee agreed it remains appropriate to continue to tighten monetary conditions at pace to maintain price stability... More>>

The Download Weekly: Vodafone FibreX back in court

Vodafone and the Commerce Commission head back to court over FibreX in a week the TCF issues broadband marketing codes that should avoid similar problems in the future... More>>

Kiwibank: Savers To Benefit From Higher Returns Following OCR Rise

Following market movements Kiwibank is pleased to increase the interest rate and rates of return on its savings accounts... More>>

Fonterra: Provides 2022/23 Opening Forecast Farmgate Milk Price & Business Performance Update
Fonterra today announced its 2022/23 opening forecast Farmgate Milk Price and provided an update on its third-quarter performance... More>>

Stats: Quiet Start For Retail In 2022
The volume of retail sales was relatively unchanged in the March 2022 quarter, following a strong increase in the December 2021 quarter, Stats NZ said today... More>>