The New Zealand dollar gained against its trans-Tasman counterpart as the Reserve Bank of Australia retained a neutral bias while keeping its cash rate unchanged yesterday, putting it at odds with major central banks that are talking up the prospect of rate hikes.
The kiwi rose to 95.74 Australian cents as at 8am in Wellington from 95.31 cents late yesterday. The local currency traded at 72.86 US cents from 72.70 cents yesterday with financial markets in the world's biggest economy closed for the July 4 Independence Day holiday.
See live rates for the NZ-US $ below. Click for more information:
The RBA kept its target cash rate 1.5 per cent yesterday, as expected, but surprised some investors by reiterating guidance that it anticipated keeping rates on hold for some time. A recovery in iron ore prices had some questioning whether the RBA would join other central bankers in noting a growing inflation trend that could prompt rates to rise after a near-decade of extraordinarily loose monetary policy. Sweden's Riksbank was the latest in adding its voice to the chorus, with governor Stefan Ingves saying while there was no immediate need to hike rates they'll probably start moving next year.
