NZ dollar gains vs. AUD as Australian retail sales fall   30 May 2012

The New Zealand dollar gained against its trans-Tasman counterpart after figures showed Australian retail sales shrank last month, sapping investors' appetite for the so-called Aussie. The kiwi is headed for a 7 percent monthly decline against the greenback.

The kiwi climbed to 77.60 Australian cents at 5pm from 77.44 cents at 8am and 77.29 cents yesterday. It was little changed at 76.03 US cents from 76.10 cents yesterday.

Australian retail sales shrank 0.2 percent in April, falling short of the 0.2 percent growth forecast by economists, government figures showed. Australia has been contending with a two-speed economy over the past year, as its resources sector charges away while its service sector and household demand remain subdued.

"The markets seemed to react to the headline (retail sales) figure, and that helped the kiwi/Aussie cross rate a little," said Chris Tennent-Brown, FX economist at Commonwealth Bank of Australia in Sydney, referring to the currencies colloquially. "The kiwi should get up to 80 Australian cents in the course of the year" barring any meltdown in Europe, he said.

New Zealand's currency is poised for a 7 percent monthly decline against the greenback after Europe's deteriorating financial stability weighs on investors' confidence. Traders have been eschewing risk-sensitive assets since Greece's election failed to deliver any clear winner and Spain's banking system looks likely to need a major recapitalisation.

"The kiwi fell about 10 US cents in the end and I think when you get that sort of move, unless you have GFC (global financial crisis) style news flowing for months on end, inevitably you'll get some consolidation," Tennent-Brown said. "If we start to see things pick up, then the kiwi and Aussie should be able to rise."

Investors will be watching for any new headlines about Spain's banking system and the likelihood of it needing a regional bail-out, ahead of Friday's Chinese manufacturing figures and US employment numbers on the same day.

The trade weighted index increased to 69.48 from 69.36 yesterday, and is poised for a 4.5 percent monthly decline.

The New Zealand dollar increased to 48.68 British pence from 48.55 pence yesterday and was little changed at 60.41 yen from 60.47 yen.

(BusinessDesk)

Add a comment

Bookmark and Share

News

Customs makes record drug seizures

1 Mar 2017 News
28 Feb 2017 Customs Minister Nicky Wagner is today congratulating Customs on a record number of drug seizures in 2016. “Customs... more

Victoria Square restoration underway

1 Mar 2017 Canterbury Earthquake
28 February 2017 The restoration of earthquake-damaged Victoria Square is now underway, Associate Minister supporting Greater... more

Business

Positive step forward for pay equity

1 Mar 2017 Business News
28 Feb 2017 State Services Minister Paula Bennett has welcomed an agreement with unions which will see the Government’s new pay... more

New Zealand companies impress at Dubai tradeshow

1 Mar 2017 Business News
1 March 2017 Minister for Primary Industries Nathan Guy has attended the world’s largest food tradeshow in Dubai today, as... more

Living

3rd Position, Louis Vuitton America’s Cup World Series

21 Nov 2016 Lifestyle
Emirates Team New Zealand EMIRATES TEAM NEW ZEALAND CLOSES IN 3rd POSITION THE LOUIS VUITTON AMERICA’S CUP WORLD SERIES more

Arts Foundation Award recipients for 2016

14 Nov 2016 Lifestyle
The Arts Foundation Next generation of internationally acclaimed talent among the Arts Foundation Award recipients for 2016Under ... more

Property

NZ house prices gain 11% in October

14 Nov 2016 Property
Article - BusinessDesk Monday 14 November 2016 10:28 AM NZ house prices gain 11% in October, driven by sales of higher value homes By... more

RBNZ sees pressures building in Auckland construction sector

11 Nov 2016 Property By Paul McBeth
Article - BusinessDesk Thursday 10 November 2016 04:04 PM RBNZ sees pressures building in Auckland construction sector By Paul ... more

Migration

Recognised Seasonal Employers employ more Kiwis

8 Feb 2017 Migration
7 Feb 2017 Immigration Minister Michael Woodhouse welcomes a report showing the vast majority of employers who take on seasonal... more

Good progress on investment attraction strategy

8 Dec 2016 Migration
Economic Development Minister Steven Joyce has welcomed news that New Zealand is attracting a higher level of quality international... more

Travel

Weirdest things visitors Google before coming

6 Feb 2017 NZ Tourism
8 Feb 2017 Does New Zealand celebrate halloween?  Is Auckland a dangerous town- these are some of the subjects visitors Google... more

New campaign to get more Aussies to Northland

30 Jan 2017 Travel & Tourism
30 January 2017 A new marketing campaign starting this week to attract Australians to Northland is an excellent approach to... more

Sport

VALE: Tania Dalton 1971-2017

1 Mar 2017 Netball
VALE: Tania Dalton 1971-2017 March 1, 2017   The Netball community is deeply saddened to hear of the passing of Silver Fern... more

Silver Ferns wrap up Quad Series with big win

6 Feb 2017 Netball
6 Feb 2017 The Silver Ferns finished runners-up in the Netball Quad Series after completing a well-crafted 70-39 win over the SPAR... more

Columns

Gordon Campbell on the Gareth Morgan crusade

11 Nov 2016 Opinion
Column - Gordon Campbell   Gordon Campbell on the Gareth Morgan crusade First published on Werewolf more

Gordon Campbell on the US election outcome

10 Nov 2016 Opinion
Column - Gordon Campbell   Gordon Campbell on the US election outcome more

Kiwi Success

Spencer to be Acting Governor of Reserve Bank

8 Feb 2017 Appointments
7 Feb 2017 Finance Minister Steven Joyce will appoint current Deputy Reserve Bank Governor Grant Spencer as the Acting Governor of... more

Temporary Chairs appointed to Canterbury and South Canterbury DHB

1 Feb 2017 Appointments
30 January 2017 Health Minister Jonathan Coleman has today appointed temporary Chairs to the boards of Canterbury and South... more

Recruitment

New employment resource for young people

1 Mar 2017 Recruitment
28 Feb 2017 Tertiary Education, Skills and Employment Minister Paul Goldsmith and Associate Education Minister Louise Upston have... more

Record number of people in employment

1 Feb 2017 Recruitment
1 Feb 2017 Tertiary Education, Skills and Employment Minister Paul Goldsmith has welcomed the record number of New Zealanders now in... more

s