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


NZ dollar gains after Australian building approvals, RBNZ

NZ dollar gains on Australian building approvals, RBNZ warns on strong currency

By Paul McBeth

Oct. 31 (BusinessDesk) - The New Zealand dollar followed its Australian counterpart higher as a jump in Australian building consents helped lift both currencies and after Reserve Bank governor Graeme Wheeler said a strong kiwi may limit the timing and extend of next year’s rate hikes.

The kiwi rose to 82.50 US cents at 5pm in Wellington from 82.25 cents at 8am and 82.28 cents yesterday. The trade-weighted index advanced to 76.33 from 76 yesterday.

Australian new home building approvals climbed 14 percent last month, according to the Bureau of Statistics, and well ahead of the 2.8 percent increase forecast. That lured investors back to the trans-Tasman currencies, and the Australian dollar rose to 94.89 US cents at 5pm in Wellington from 94.67 cents yesterday. New Zealand’s building consents rose 4.1 percent in September, according to government figures today.

“Australia’s building consent numbers were outstanding,” said Alex Hill, head of dealing at HiFX in Auckland. “That helped keep the kiwi up.”

The construction data came after New Zealand’s central bank held the official cash rate at 2.5 percent, as expected, while saying sustained strength in kiwi would give him greater flexibility as to the timing and magnitude of next year’s expected rate hikes.

The RBNZ statement was preceded by the Federal Reserve’s monetary policy review, which kept the US$85 billion money printing programme unchanged, while giving a more upbeat assessment of the world’s biggest economy than anticipated.

HiFX’s Hill said the local currency is trading between 81.80 US cents and 83.20 cents, and isn’t going to move “unless the US dollar does.”

The local currency crept up to 86.90 Australian cents from 86.76 cents yesterday and advanced to 81.24 yen from 80.65 yen. The kiwi gained to 51.49 British pence from 51.25 pence yesterday and rose to 60.17 euro cents from 59.82 cents.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Government: New Year Border Exception For Seasonal Workers In The Horticulture And Wine Industries

2000 additional RSE workers to enter New Zealand early next year employers must pay these workers at least $22.10 an hour employers will cover costs of managed isolation for the RSE workers RSE workers will be paid the equivalent of 30 hours work a week ... More>>


Grey Power: Is Disappointed To Learn Of More Bank Closures

Many older people are being left without essential services because of cost cutting and the march of modern technology. It is now expected that most banking transactions can occur via the internet or telephone. Jan Pentecost, President of the Grey Power ... More>>


Economy: Supply Chain On Brink Of Overload Says National Road Carriers

The New Zealand supply chain is on the brink of overload and it looks like the upcoming peak imports season may push it over the edge says National Road Carriers Association (NRC) CEO David Aitken. “Worldwide supply chains are in disarray,” says Mr Aitken. ... More>>

Stats NZ: Annual Goods Trade Surplus At 28-Year High

New Zealand’s annual goods trade surplus reached a 28-year high of $2.2 billion as imports tumbled in the year ended October 2020, Stats NZ said today. “This is the largest annual surplus since the July 1992 year, driven mainly by much lower ... More>>

ComCom: How Real Is That Bargain?

The Commerce Commission urges retailers and consumers to think hard about the bargains being offered as ‘Black Friday’ and Christmas draw near. Black Friday has now overtaken Boxing Day in terms of retail spending, according to data from electronic ... More>>

Stats NZ: Births And Deaths: Year Ended September 2020

Births and deaths releases provide statistics on the number of births and deaths registered in New Zealand, and selected fertility and mortality rates. Key facts For the year ended September 2020: 57,753 live births and 32,670 deaths ... More>>


Forest & Bird: Kākāpō Wins Bird Of The Year 2020

The nation has voted and Aotearoa New Zealand has a new Bird of the Year. New Zealand’s moss-colored flightless parrot has climbed to the top-spot for the second time in Forest & Bird’s annual Te Manu Rongonui o Te Tau/Bird of the Year competition. ... More>>