New Zealand dollar slips against Australian dollar
The New Zealand dollar has slipped from its one year high against the Australian dollar. But it has made fresh gains overnight against both the US dollar and the British pound.
It was trading at 95.91 Australian cents at 6am this morning, after rising as high as 96.29 cents yesterday.
The kiwi gained against the Australian dollar due to the uncertainty over the Australian election result. Some analysts believed that Australia's triple-A credit rating might be in doubt.
But the Australian dollar subsequently gained ground after the ratings agencies downplayed suggestions of a downgrade.
Moody's Investors Services and Fitch Ratings both said the triple-A rating was in no immediate danger. Standard & Poor's will review the rating at a meeting later this month.
The longer term prospects for the credit rating will be determined by how the next parliament deals with the Australian government's budget deficit.
It is estimated that a downgrade of Australia's triple-A credit rating would add up to 0.20 percent to the government and big banks' borrowing costs.
The Australian currency's next move will be determined by this afternoon's rates review by the Reserve Bank of Australia. The RBA is expected to keep its key lending rate at 1.75 percent.
The New Zealand dollar made gains against other major currencies. It had risen almost one percent overnight against the greenback to trade at 72.32 US cents at 6am.
The kiwi was sitting at 54.41 British pence and was trading at 64.83 Euro cents.