Kiwi slips against Aussie dollar

  • 06/10/2015
Kiwi slips against Aussie dollar

The New Zealand dollar dipped against its trans-Tasman counterpart after the Reserve Bank of Australia disappointed traders looking for hints of another rate cut.

The kiwi fell to 91.28 Australian cents at 5pm in Wellington from 91.61 cents immediately before the release.

The RBA kept its target cash rate at two percent, with governor Glenn Stevens noting the Australian dollar was "adjusting to significant declines" in commodity prices.

"There's no hints of easing coming up in Australia which was what the markets had priced in," said Imre Speizer, senior market strategist at Westpac Banking Corp in Auckland.

"That's why the Aussie's gone up a bit" and why the kiwi dollar was weaker on the cross-rate, he said.

The kiwi was little changed at 64..99 US cents at 5pm in Wellington from 65.04 cents at 8am, and up from 64.65 cents yesterday, as traders await the GlobalDairyTrade auction overnight which is expected to show another increase in milk prices.

Mr Speizer said the delays to US interest rate hikes and the improving dairy outlook prompted him to revise his short-term outlook for the kiwi dollar, which he now sees rising over the next few weeks, before reverting to a downward trend once the Federal Reserve starts tightening monetary policy.

The kiwi climbed to 78.27 yen at 5pm in Wellington from 77.61 yen yesterday, to 4.1301 Chinese yuan from 4.1091 yuan and to 58.11 euro cents from 57.55 cents.

The trade-weighted index gained to 70.51 from 70.26.

NZN

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