Sharechat Logo

NZ dollar rises against the Aussie after S&P downgrade

Thursday 7th July 2016

Text too small?

The New Zealand dollar rose 0.3 percent against its trans-Tasman counterpart in response to ratings agency Standard & Poor's lowering Australia's credit outlook from stable to negative.

At 3pm in Wellington, the New Zealand dollar was trading at 95.00 Australian dollars, a rise of 0.3 cents. 

Standard & Poor's says Australia has retained its AAA rating for now, but warned the negative outlook reflected its view that without the implementation of more forceful fiscal policy decisions by the government, budget deficits may persist for several years with little improvement. S&P argues that last weekend's double-dissolution election, which has so far yielded an inconclusive result, may mean further fiscal consolidation is postponed. 

Mitchell McIntyre, senior corporate foreign exchange dealer at NZForex in Auckland said the downgrade was not unexpected after the election,

"Everyone knows the problems that Australia is facing. Commodity prices have been slammed over the last two years. It puts their external trade position in almost dire straits compared to what they were used to. It’s no surprise they’ve moderated their outlook, it’s almost just a wonder they haven’t done so sooner”.

McIntyre added that the dip in the Aussie had been pretty short-lived and have been viewed as a buying opportunity by many in the market.

BusinessDesk.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

SML - Synlait Milk Limited - Trading Halt of Securities
AIA - Auckland Airport announces board chair changes
AIA - Auckland Airport announces board chair changes
CEN - Tauhara commissioning progress update
FPH initiates voluntary limited recall
March 28th Morning Report
KFL Celebrates 20 Years of Excellence in Investment Mgmt.
SVR - Savor FY24 Earnings Guidance & Change in Banking Partner
NZK - NZ King Salmon Investments Limited FY24 Results
March 27th Morning Report