Daily Management Review

NZ dollar posts record high against Australian dollars


Australia may have won the Cricket World Cup beating New Zealand, but the Kiwis have bowled out Australia in the money market with a record high against the Australian dollar.

New Zealand dollar rose to record high against the Australian Dollar, thanks to the traders looked ahead to non-farm payrolls data in the US and an expected interest rate cut by the Reserve Bank of Australia after the Easter weekend.

The kiwi was trading at 98.51 Australian cents, the closest it has come to the stronger Australian dollar since a rallying in 1984 for 97.90 cents. The local currency traded at 74.62 US cent. The kiwi peaked high when Australia’s trade deficit widened for a third month in February, to A$1.26 billion.

While the markets in both Australia and New Zealand will be closed for the Easter break, the next working day of Tuesday will reveal how much of a cut Reserve Bank of Australia has made compared to New Zealand and this will in turn reflect on the upsurge of Kiwi.

The non-farm payrolls data in the US are expected to show the country adding 245,000 jobs last month which will also affect the trade of New Zealand as well as Australian dollars. In a reverse effect, Australian government bond futures tracked US Treasuries. The three-year contract climbed 4 ticks to 98.360, while the 10-year contract put on 2.5 ticks to 97.6900.

The gain for Kiwi could also be attributed to the fall in the price of dairy products to an average 10.8 percent in the latest GlobalDairyTrade auction, with many in the market anticipating an even weaker sale.