90 seconds at 9am: Tax reform D-Day; RBA holds rates; A$ drops; NZ$ rises

Watch on our video page here. Watch video on you tube here. Bernard Hickey details the key news overnight in 90 seconds at 9am in association with ASB, including news Prime Minister John Key will announce likely tax reforms next Tuesday in his 'speech from the throne' to open Parliament. This will foreshadow announcements likely in the 2010 budget due on May 20. Both Key and Finance Minister Bill English confirmed the plan to detail likely reforms. This means the property market will not have to remain in limbo until May. Meanwhile, the Reserve Bank of Australia surprised most economists by leaving the Official Cash Rate there on hold yesterday afternoon at 3.75% after three consecutive rises in its last 3 decisions. The Australian dollar fell 1 USc and the NZ dollar rose 1Ac to 80.4 Ac after the decision. The NZ dollar was also helped by hopes of a global economic recovery that lifted the Dow 1% and boosted appetites for risky currencies like ours. Oil and and aluminium prices also rose on expectations a global recovery would increase demand for commodities. However, Fonterra's online auction overnight of milk powder found average prices fell 1.6% in February from January and are down 8.5% from its recent December peak.