NZ dollar gains vs. AUD as Australian retail sales fall 30 May 2012
- NZ dollar gains on trade surplus Business
- ComCom files against Vodafone on 'Red Essentials' Business
- Woosh Wireless goes into voluntary administration Business
- Jade Software loss widens in 2015 Business
- Z confident in $30mn savings from Chevron acquisition Business
- Bank of China NZ unit funds Chinese-NZ mission Business
- Former Mighty River engineer sentenced to jail for fraud Business
- Comvita to beef up honey supply in new joint venture Business
- NZ posts trade surplus in April as fruit drives exports Business
- Arvida posts underlying full-year profit Business
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.
16 May 2016 News
Asia New Zealand Foundation Shanghai trip to inspire New Zealand teachers A group of teachers hailing from Invercargill to Whangarei... more
16 May 2016 News
New Zealand Government Hon Louise Upston Minister for Women 15 May 2016 Highest ever percentage of women on state sector boards New... more
17 May 2016 Business News
Tuesday 17 May 2016 05:10 PM NZ dollar tumbles vs Aussie after RBA minutes, extends slide on inflation outlook May 17 ... more
16 May 2016 Lifestyle
Crossing The Bridge Exhibition to Showcase Ashburton’s Migrant Community 16 May 2016 A photography and film exhibition... more
16 May 2016 Entertainment
Taika Waititi’s Hunt for the Wilderpeople has cemented its place in the record books overtaking the 2010 Kiwi classic BOY... more
16 May 2016 Property
By Jonathan Underhill May 16 (BusinessDesk) - Kiwi Property Group, the country's biggest listed property investor by market value,... more
30 Mar 2016 Migration
British High Commissioner Jonathan Sinclair is defending changes to skilled migrant rules for Britain but suggests they won't affect... more
16 May 2016 NZ Tourism
Article - BusinessDesk Monday 16 May 2016 12:20 PM Jucy plans to expand pod-style hotel chain to Australia in 2017 By Fiona... more
16 May 2016 Sport
Kids' Lit Quiz New Zealand’s ‘other’ national sport has its time to shine Monday, May 16 2016: There’s no... more
16 May 2016 Column
Column - Gordon Campbell Gordon Campbell on New Zealand’s support for the Kazakh dictatorship Thanks to Sacha Baron... more
12 May 2016 Appointments
New Zealand Government Hon Anne Tolley Minister for Social Development 12 May 2016 New appointments to Vulnerable Children’s... more
28 Apr 2016 Appointments
University of Otago University of Otago appoints next Dean of Pharmacy A leading researcher from Canada has been appointed as the... more
10 Mar 2016 Recruitment
New Zealand Government Hon Michael Woodhouse Minister for Workplace Relations and Safety 10 March 2016 Zero-hour contracts gone, PPL... more