HomeNEWSNew Zealand and Australian dollars approach parity

New Zealand and Australian dollars approach parity

The New Zealand Herald has reported that the Kiwi peaked yesterday at 99.78 Australian cents, and could hit equal value today.

Currency authority XE reported that one New Zealand dollar was equal to 98.97 Australian cents at 2pm today.

Scoop’s BusinessDesk service reported that the Kiwi strengthened against the Australian dollar after figures showed Australia’s trade deficit widened for a third month in February, to A$1.26 billion. BusinessDesk said last week that financial markets expected the Reserve Bank of Australia to cut its cash rate a quarter point to 2 percent on Tuesday to stimulate the country’s economy, but this had not yet happened by mid-afternoon.

Prime Minister John Key told Radio New Zealand that the situation had been tough on exporters but had benefited some manufactuers, who were spending less on imported components.

Statistics New Zealand says motor vehicles were the top import commodity from Australia during 2014, valued at $319 million, but Stuff.co.nz has reported that other major Aussie imports include chocolate, pet food, bread, cakes and biscuits, computers, wine, books and cleaning products.

Retailers selling any and all of the above could stand to benefit from parity, as could those who regularly travel to Australia for business.

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