Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


NZ dollar pares gains from retail sales

NZ dollar pares gains from strong retail sales, Italian bond auction looms

By Paul McBeth

Nov. 14 (BusinessDesk) – The New Zealand pared gains from unexpectedly strong third-quarter retail sales as investors overcame their initial optimism ahead of the first Italian government bond auction under a new administration.

The kiwi dollar was little changed at 78.80 US cents at 5pm from 78.75 cents at 8am, and up from 78.53 cents in late trading on Friday. The currency spiked as high as 79.30 cents after the strong retail sales data.

The currency got a short-lived boost from today’s third-quarter retail sales figure, which showed the seasonally adjusted volume of consumer spending rose 2.2 percent in the three months ended Sept. 30, according to government data, beating expectations of a 0.7 percent quarterly gain.

The increase came off the back of the Rugby World Cup, which has struggled to register a pick-up in economic data, and the latest release has allayed fears the tournament wasn’t going to offer an injection to the economy.

Still, that comes ahead of an Italian government bond auction, with the new administration looking to sell as much as 3 billion euros of notes maturing in 2016. Former European Central Bank competition commissioner Mario Monti has been appointed as former Prime Minister Silvio Berlusconi’s replacement to prevent the spread of sovereign debt woes into the wider regional economy.

Retail sales “was a lot of World Cup spending on accommodation and food retail,” and isn’t showing a sustained lift in local demand, said Tim Kelleher, head of institutional FX sales New Zealand at ASB Institutional. The kiwi dollar is tracking Europe’s government bond markets and “we’re all becoming bond traders.”

Investor sentiment got a boost in late trading on Friday in New York, with stocks on Wall Street rallying ahead of the Italian government’s announcement.

Still, ASB’s Kelleher warned those gains were on very light trading, with the New York Stock Exchange reporting its fourth-thinnest trading day this year. That means those gains are vulnerable to a reversal, he said.

The kiwi dollar rose from 76.46 Australian cents from 76.38 cents on Friday and gained to 60.79 yen from 60.33. It rose to 57.21 Euro cents from 57.03 cents and gained to 49.01 British pence from 48.86 pence last week. The trade weighted index rose to 68.90 from 68.72 on Friday in New York.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Taxing Multinationals: EU Ruling Sours Apple

Shares of Apple slid, down 0.9 percent as of 3.08pm in New York, after the European Commission ruled that Ireland granted the company undue tax benefits of up to 13 billion euros (US$14.5 billion)—"illegal aid” under EU rules that the commission says Ireland now must recover from Apple. More>>

ALSO:

NZX Review: Best Practice Code Recommends Code Of Ethics

NZX, the sharemarket operator, is seeking feedback on proposed changes to its corporate governance best practice code including a published code of ethics, rules about share trading and continuous disclosure, and more transparency over board appointments and chief executive pay. More>>

ALSO:

Auditors:

Signs Of Life? SETI On Russian Space(?) Signal

A star system 94 light-years away is in the spotlight as a possible candidate for intelligent inhabitants, thanks to the discovery of a radio signal by a group of Russian astronomers... Could it be a transmission from a technically proficient society? At this point, we can only consider what is known so far. More>>

Post-Post: Brian Roche To Step Down As NZ Post CEO

Brian Roche will step down as chief executive of New Zealand Post in April 2017, having led the state-owned postal service's drive to adjust to shrinking mail volumes with a combination of cost cuts, asset sales, modernisation and expansion of new businesses. More>>

ALSO:

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news