Oz property data gives the kiwi a boost

The New Zealand dollar firmed slightly after further bad news about Australia’s housing market but ended down on the week as investors bet on the chance of a rate cut.

The kiwi was trading at US66.22c at 5pm yesterday from US66.15c at 9am. It was at A94.64c from A94.46c and the tradeweighted index was at 72.32 points from

72.27.

The currency has dropped from US69.59c in New York last Friday.

Figures earlier in the day showed Australia’s dwelling approvals fell 15.5 per cent in March from February, largely because of a

30 per cent drop in apartment approvals. The figures come after data earlier in the week showed house prices in Sydney and Melbourne continue to fall and were down

10.9 per cent and 10 per cent respectively in the year ended March.

“It’s a case of more bad news in Australia on the housing market, which is the Reserve Bank of Australia’s big domestic worry at the moment,” said Peter Cavanaugh, the senior client adviser at Bancorp Treasury Services.

The US dollar has also risen following Federal Reserve chairman Jerome Powell’s comments that there was no need for a rate cut in the US.

Cavanaugh said the market was still pricing in about a 50/50 chance of a rate cut in New Zealand next Wednesday when the Reserve Bank releases its latest monetary policy statement.

The New Zealand dollar was trading at

50.78 British pence from 50.74, at 59.28 euro cents from 59.21, at 73.82 Japanese yen from

73.78 and at 4.4591 Chinese yuan from

4.4557. The New Zealand two-year swap rate fell to 1.6197 per cent from 1.6239 on Thursday while the 10-year swap rate edged up to 2.1875 per cent from 2.1825.