{"id":298550,"date":"2025-11-18T06:18:09","date_gmt":"2025-11-18T06:18:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/298550\/"},"modified":"2025-11-18T06:18:09","modified_gmt":"2025-11-18T06:18:09","slug":"kiwi-dollar-slumps-to-12-year-low-against-aussie-ahead-of-christmas-travel","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/298550\/","title":{"rendered":"Kiwi dollar slumps to 12-year low against Aussie ahead of Christmas travel"},"content":{"rendered":"<p class=\"wzdDHKkU\" style=\"display:none\">\u201cThe economic fundamentals have certainly been in Australia\u2019s favour over the last little while and [I] think that justifies the move that we have seen.<\/p>\n<p class=\"wzdDHKkU\" style=\"display:none\">\u201cYet there is a darkness-before-the-dawn, green-shoots thematic in New Zealand, and that\u2019s probably going to limit the downside.<\/p>\n<p class=\"wzdDHKkU\" style=\"display:none\">\u201cThe current level of the exchange rate is going to be a bit of a rude shock for anyone going on holiday to Australia.<\/p>\n<p class=\"wzdDHKkU\" style=\"display:none\">\u201cThe flipside of that is that Australians who are coming to New Zealand will have a little more money to spend and they are certainly a key target market for us.\u201d<\/p>\n<p class=\"wzdDHKkU\" style=\"display:none\">ASB senior economist Mark Smith said the Aussie markets were pushing back on the likelihood of rate cuts as the data there had remained strong.<\/p>\n<p class=\"wzdDHKkU\" style=\"display:none\">\u201cThey had a pretty strong employment report last week and I think that was the catalyst,\u201d he said.<\/p>\n<p class=\"wzdDHKkU\" style=\"display:none\">Seasonally adjusted data last week showed the Australian unemployment rate fell to 4.3% in October, while employment increased.<\/p>\n<p class=\"wzdDHKkU\" style=\"display:none\">\u201cYou\u2019ve also had pretty hawkish RBA commentary sort of saying we\u2019re more likely to not cut rates, given where we are at the moment,\u201d Smith said.<\/p>\n<p class=\"wzdDHKkU\" style=\"display:none\">\u201cWe [in New Zealand] are still looking at rate cuts and there\u2019s a 25-basis-point cut fully priced in for November,\u201d he said.<\/p>\n<p class=\"wzdDHKkU\" style=\"display:none\">The RBA\u2019s official rate is 3.6%.<\/p>\n<p class=\"wzdDHKkU\" style=\"display:none\">\u201cThe rate differential has just widened and &#8230; it\u2019s really reflective of where both economies are at the moment,\u201d Smith said.<\/p>\n<p class=\"wzdDHKkU\" style=\"display:none\">\u201cThe New Zealand economy is probably recovering, but we\u2019re climbing out of a bigger hole while the Australian economy has sailed through reasonably well.\u201d<\/p>\n<p class=\"wzdDHKkU\" style=\"display:none\">Jamie Gray is an Auckland-based journalist, covering the financial markets, the primary sector and energy. He joined the Herald in 2011.<\/p>\n<p>Stay ahead with the latest market moves, corporate updates, and economic insights by subscribing to our <a href=\"https:\/\/www.nzherald.co.nz\/my-account\/profile\/newsletters\/?from=cmp\" target=\"_self\" rel=\"nofollow noopener\" title=\"https:\/\/www.nzherald.co.nz\/my-account\/profile\/newsletters\/?from=cmp\">Business newsletter<\/a> \u2013 your essential weekly round-up of all the business news you need.<\/p>\n","protected":false},"excerpt":{"rendered":"\u201cThe economic fundamentals have certainly been in Australia\u2019s favour over the last little while and [I] think that&hellip;\n","protected":false},"author":2,"featured_media":298551,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[155591,64516,4476,2740,151104,155592,28,6931,6642,926,101,53943,155593,62943,60487,155598,573,14811,155595,155596,155590,155594,826,6007,2427,5753,659,155597,2735,7526],"class_list":["post-298550","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-12year","tag-across","tag-against","tag-ahead","tag-around","tag-aussie","tag-business","tag-christmas","tag-could","tag-dollar","tag-economy","tag-form","tag-holidaymakers","tag-kiwi","tag-low","tag-lows","tag-of","tag-planning","tag-rude","tag-shock","tag-slumps","tag-tasman","tag-to","tag-trading","tag-travel","tag-trip","tag-very","tag-weak","tag-which","tag-zealand"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/298550","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=298550"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/298550\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/298551"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=298550"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=298550"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=298550"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}