Dollar near post-float high against greenback
Attention shifts to Australia with today's rates announcement by the RBA.
The New Zealand dollar neared a post-float high against the greenback yesterday, despite a small drop in commodity prices.
The ANZ Commodity Price Index fell 1.2% in June but was still the third highest on record, and the world price index was up slightly.
The dollar reacted positively to the news, creeping above 83USc and approaching the post-float high of 83.18USc reached last Thursday.
This morning at about 8.30am the dollar was at 82.92USc, 51.5p and 57.06€c, approaching record levels against all three currencies.
With America celebrating Independence Day today, attention is likely to be focused on New Zealand’s other trading partners.
Bancorp’s daily market alert said, “Today is Australia’s turn to step into the spotlight with the RBA’s monthly meeting this afternoon.
“Expectations are unanimous for no change to the 4.75% cash rate but there is much anticipation about what the RBA has to say.
“Recent weaker than expected Australian data and signs of a slowing in China’s growth have caused markets to discount any RBA rate rises for a year and have even prompted some to speculate that the RBA’s next act will be a rate cut.”
NBR staff
Tue, 05 Jul 2011
Tue, 05 Jul 2011
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Dollar near post-float high against greenback
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