Kiwi moves higher against aussie
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.
- Fairfax Media