New Zealand Dollar Higher Against Australian Dollar

 
   By Rebecca Howard 
 

        WELLINGTON, New Zealand--The New Zealand dollar was weaker against the U.S. dollar late Monday but pushed higher against the Aussie as Australian financial markets priced in close to three interest rate cuts in the next year.
        In late Wellington trading, the New Zealand dollar was at US$0.7486 versus US$0.7539 late Monday. It was at A$0.9806 versus A$0.9756 after touching a fresh post-float high of A$0.9844 overnight.
        The New Zealand dollar remains the G10 currency most resilient to U.S. dollar strength and is "relentless" against the Australian dollar, said ANZ Bank. It said the Kiwi's strength versus the Australian dollar is "perhaps a reflection of the differing confidence levels in the economies."
        The Australian dollar was under pressure as financial markets revved up bets that the Reserve Bank of Australia will lower its cash rate to 2.00% next week from 2.25%.
        The shift in the market also brought forecasts that the RBA might cut interest rates perhaps another two times in the next year to support a sluggish economy, and help reverse rising unemployment.
        Earlier Tuesday, the ANZ Business Outlook for March showed that business confidence in New Zealand remains firm. "Headline confidence, firms' own activity expectations, profit expectations and employment and investment intentions all increased, seasonally adjusted. This is not an economy headed into dire straits," said ANZ Bank Chief Economist Cameron Bagrie.
        A net 35.8% of respondents in the monthly survey expected business conditions to improve over the next 12 months compared with a net 34.4% who expected an improvement in the prior survey held in February. A net 42.2% expected their own business activity to improve in the coming year versus 40.9% in the earlier survey.
        The main event risk for the New Zealand dollar is the GlobalDairyTrade auction, with the result due early Thursday in New Zealand.
        --James Glynn contributed to this article.
        Write to Rebecca Howard at rebecca.howard@wsj.com
        (END) Dow Jones Newswires

        March 31, 2015 02:09 ET (06:09 GMT)

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