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

 

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>

BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>


BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Housing: More House Price Gains Expected

House price expectations remain high, with a net 56% of respondents expecting house prices will increase. Fears of higher interest rates are fading, consistent with the RBNZ’s signals this year. Affordability and a lack of houses for ... More>>

TDDA: State-Of-The-Art Drug Testing Laboratory To Open In Auckland

World leading drug testing agencies, The Drug Detection Agency (TDDA) and Omega Laboratories, open New Zealand laboratory More>>

Network: Bigpipe Launches Ultra-Fast Broadband Into Wellington

Bigpipe Launches Ultra-Fast Broadband into Wellington Naked broadband provider Bigpipe has extended its national reach, announcing today, the launch of its unlimited UFB offering into Wellington. The Spark Venture business is giving Wellingtonians the ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news