Kiwi moves higher against aussie

LAURA WALTERS
Last updated 08:01 18/12/2013

Relevant offers

Industries

Top of the south working group advocates seek focus in fishery preservation Quirky QT hotel brand coming to Queenstown Rolls-Royce emerges tarnished, but lucky despite NZ$1.15b fine Donald Trump's appointment of Xero's Chris Liddell: Does NZ not care about the values of its business leaders? Investigations but no progress on Christchurch-Dunedin passenger train, KiwiRail says Spark joint-venture Southern Cross commits first $8m for new Pacific cable Baby City fined $39k for selling non-compliant cots NZ Bankers' Association warns about survey scam 23 complaints about child photography business shamed for Northland privacy breach 'Silly' to suggest Xero has endorsed Trump administration, says CEO Rod Drury

The New Zealand dollar continues to push higher against the aussie as the two countries' economies continue to move in opposite directions.

The kiwi recently traded at A92.72c after hitting a high of A92.96c in early trading.

OM Financial senior foreign exchange and derivatives adviser Stuart Ive said the central banks of the two countries had "laid bare their economies".

Yesterday's half-yearly opening of the New Zealand Government's books showed a strong outlook for our economy, Ive said. Meanwhile, Australia's economy was languishing.

"The tale of two cities really continues," he said.

The Reserve Bank of Australia highlighted the fact it could still cut rates from 2.5 per cent, Ive said.

The Reserve Bank of New Zealand made it "point-blank clear" last week where the New Zealand economy was compared to other developed nations' economies, and indicated it would probably interest rates next year from 2.5 per cent.

Ive said the New Zealand dollar's constant breaking of five-year highs was getting "a little bit boring really".

The kiwi was on a clear trajectory, breaking through the last Australian cross-rate resistance level of A91c.

Ive said he expected the New Zealand dollar to trade between A91.30c and A94c in the coming month.

Ad Feedback

- Fairfax Media

Special offers

Featured Promotions

Sponsored Content