Kiwi steady after RBA lifts forecast

The kiwi has held up against the Australian dollar after the Reserve Bank of Australia raised its forecast for growth and inflation.

The New Zealand dollar was little changed after the Reserve Bank of Australia lifted its growth forecast, having dropped its monetary easing bias this week.

The kiwi traded at 91.95 Australian cents at 5pm from 91.87 cents on Thursday, as it headed for a 0.4 per cent weekly decline from 92.32 cents last week.

The RBA raised its forecast for growth and inflation this year, having this week removed the chance of another rate cut as the Australian economy shows more lift in it than previously thought.

The kiwi traded at 82.26 US cents at 5pm in Wellington from 82.68 cents at 8am and 82.38 cents on Thursday.

The trade-weighted index was 77.61 from 77.54 on Thursday.

Traders are looking ahead to US non-farm payrolls on Friday in Washington, overnight local time, which are expected to show 180,000 jobs were added to the world's biggest economy in January after bitter December weather sapped employment growth.

US employment is seen as a key plank in the Federal Reserve's plans to slow down its monetary stimulus.

"Higher employment in the US should open the door for US interest rates to go higher and support the US dollar," said Martin Rudings, senior advisor at OMF in Wellington.

"The kiwi and the Aussie should come off, but not as bad as emerging markets."

The kiwi fell to 60.54 euro cents from 60.90 cents on Thursday, but gained to 83.89 yen from 83.59 yen.


2 min read

Published

Updated

Source: AAP


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