Stephen Koukoulas Dollar Quotations

Bollard is clearly frustrated. The kiwi dollar is too strong, adding to external imbalances by making it harder for exporters to compete. He would love to see the currency falling.

Bollard is clearly frustrated, ... The kiwi dollar is too strong, adding to external imbalances by making it harder for exporters to compete. He would love to see the currency falling.

The news should provide support for the Australian dollar with a hint that the trade balance will continue to narrow.

The Australian dollar should be doing better in the short term because the rate differential is still supportive.

For the New Zealand dollar it looks like one-way traffic. The scenario for cutting rates is now realistic, if not urgent.

The case for a rate hike, while not totally compelling yet, is gaining a bit of momentum with these sort of numbers. On an interest-rate-differential and growth story, it should put the Australian dollar back in focus and see it move higher.

The market hasn't been paying enough attention to inflation risks as it should. The prospect of an interest-rate move higher in the months ahead will mean the Australian dollar will find some friends.