21 Apr 2015

NZD inches towards parity

1:53 pm on 21 April 2015

The New Zealand dollar is again inching towards parity with the Australian currency, after a big jump overnight.

New Zealand dollar

Photo: 123rf

The Kiwi rose half a cent against the Australian after the governor of the Reserve Bank of Australia, Glenn Stevens, gave a speech in New York overnight, where he successfully jawboned, or talked down the currency.

That immediately caused the Australian to fall, and the Kiwi to strengthen.

At midday, the New Zealand dollar was buying 99.25 Australian cents.

There has been a suggestion that the Kiwi could rise higher today, following the forthcoming release of the RBA minutes of its last meeting.

But ANZ currency strategist Sam Tuck was doubtful that would happen.

He said Australian first quarter inflation figures out Wednesday were more likely to move the currency.

That was because if inflation is weaker than expected that could cause the Australian dollar to fall further, potentially pushing the Kiwi to parity, he said.