News | Business
20 Apr 2018 22:43
NZCity News
NZCity CalculatorReturn to NZCity

  • Start Page
  • Personalise
  • Sport
  • Weather
  • Finance
  • Shopping
  • Jobs
  • Horoscopes
  • Lotto Results
  • Photo Gallery
  • Site Gallery
  • TVNow
  • Dating
  • SearchNZ
  • NZSearch
  • Crime.co.nz
  • RugbyLeague
  • Make Home
  • About NZCity
  • Contact NZCity
  • Your Privacy
  • Advertising
  • Login
  • Join for Free

  •   Home > News > Business

    NZD-Aussie 'parity party cancelled'

    The kiwi dollar took a tumble against the Australian after weak domestic inflation contrasted with a more upbeat economic outlook from Australia.


    Fonterra
    Fonterra

    The New Zealand dollar took a tumble against the Australian dollar after weak domestic inflation contrasted sharply with a more upbeat economic outlook from the Reserve Bank of Australia.

    The kiwi traded at A92.85c as at 5pm in Wellington from A93.85c at 8am and from A93.81c on Monday.

    The kiwi traded at US73.38c versus US73.30c late on Monday.

    The New Zealand dollar took an initial tumble when Statistics New Zealand reported consumer prices were unchanged in the second quarter.

    Annual inflation was 1.7 per cent, as the market pared back expectations the central bank might soon join others - like the Bank of Canada - that have lifted or are expected to lift rates soon.

    "The parity party is cancelled," ASB Bank head of institutional foreign exchange sales Tim Kelleher said.

    Economists had expected inflation of 0.2 per cent in the second quarter, for an annual rate of 1.9 per cent.

    The data also undershot the central bank's forecasts for inflation of 0.3 per cent in the second quarter for an annual rise of 2.1 per cent.

    "These inflation figures should lead to a substantial rethink in financial markets, which have been persistently pricing a hike in the Official Cash Rate by mid-2018," Westpac Bank said.

    The Reserve Bank has forecast that rates won't lift until September 2019.

    The kiwi came under further pressure when the Reserve Bank of Australia turned more upbeat on the economic outlook, citing an improving labour market, stronger public investment and a pick up in household consumption, in the minutes from its July meeting.

    Markets saw the comments as hawkish, pushing the Australian dollar higher, but Capital Economics chief Australia and New Zealand economist Paul Dales said while the RBA acknowledged the economic outlook remains positive "it doesn't seem eager to pull the rate hike trigger."

    While the New Zealand dollar initially fell against the greenback it managed to lift again after the US dollar came under pressure from the failure of a second attempt to pass a bill in the US Senate late on Monday.

    Looking ahead, Kelleher said investors will be watching for the results of the GlobalDairyTrade auction later in the global trading day, with whole milk powder expected to lift between 1 per cent and 3 per cent.

    The kiwi slipped to 63.64 euro cents from 63.93 cents late on Monday and fell to 82.21 yen from 82.53 yen.

    It fell to 4.9618 yuan from 4.9615 yuan and rose to 56.03 British pence from 55.97 pence.

    The trade-weighted index fell to 77.76 from 77.97.

    New Zealand's two-year swap rate fell 2 basis points to 2.21 while the 10-year swaps fell 1 basis points to 3.32 per cent.

    © 2018 NZN, NZCity


     Other Business News
     20 Apr: NZ shares fall as MSCI changes debated
     20 Apr: NZ dollar heads for 1.6pc weekly fall
     20 Apr: FMA keeping close tabs as AMP chief quits
     20 Apr: Seeka to buy T&G Kerikeri assets
     20 Apr: Kiwi down against stronger greenback
     20 Apr: Self-employed short $800m in tax: IRD
     19 Apr: NZ Bus, driver unions agree Auckland deal
     Top Stories

    RUGBY RUGBY
    Frizell stars as Highlanders beat Blues More...


    BUSINESS BUSINESS
    NZ shares fall as MSCI changes debated More...



     Today's News

    Rugby League:
    Warriors v Dragons, Broncos v Storm: NRL round seven live scores, stats and commentary 22:06

    Rugby:
    Frizell stars as Highlanders beat Blues 21:57

    International:
    Sydney Swans v Adelaide Crows: AFL round 5 live scores, stats and commentary 21:46

    Entertainment:
    Rita Ora has praised Beyonce and Jennifer Lopez as her “biggest inspirations” 21:31

    Law and Order:
    Man pulled from burning car near Papakura 21:16

    Entertainment:
    Kanye West has shared excerpts from his upcoming philosophy book on Twitter 21:01

    Entertainment:
    Kelly Clarkson’s daughter is already showing potential as a businesswoman 20:31

    International:
    Why couples with big age gaps are happier, despite the social disapproval 20:16

    Entertainment:
    Chris Pratt thinks divorce “sucks” 20:01

    Entertainment:
    WWE Hall of Famer Bruno Sammartino has died aged 82 19:31


     News Search






    Power Search


    © 2018 New Zealand City Ltd