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

 


NZ dollar extends gains as Bollard says economy understated

NZ dollar extends gains as Bollard says economy understated

By Paul McBeth

Feb. 17 (BusinessDesk) – The New Zealand dollar extended gains through the local trading session after Reserve Bank Governor Alan Bollard said the nation’s economic performance is probably understated by official data, amid upbeat investor sentiment on strong US data.

The kiwi rose to 83.67 US cents at 5pm from 83.24 cents just before 8.30am and 82.78 cents yesterday. The trade-weighted index advanced to 73.73 from 73.13.

Demand for the kiwi was stoked by Bollard’s speech to a business audience in Auckland, where he said “it is almost certain that consistent measurement conventions used in New Zealand and Australia would narrow the reported gap with Australia.” The different ways gross domestic product is measured in the trans-Tasman neighbours could be short-changing New Zealand by as much 10 percent.

“It was a little bit more an upbeat assessment from the governor,” said Dan Bell, currency strategist at HiFX in Auckland. “The kiwi has the potential to drift a little higher overnight, towards the five-month high.”

The currency was bolstered yesterday after investors’ appetite for higher-yielding, riskier assets was stoked by better than expected American employment, housing and manufacturing data. That upbeat sentiment carried through the local session, with stock markets gaining throughout the Asia Pacific. Australia’s Standard & Poor’s/ASX 200 index was up 0.4 percent in afternoon trading, while Japan’s Nikkei 225 gained 1.8 percent and Hong Kong’s Hang Seng climbed 0.7 percent.

That quelled fears from the day before about Greece’s ability to tap a bail-out fund after European finance ministers considered delaying the rescue package. The region’s policymakers are due to meet on Monday for more discussions about the Mediterranean nation.

HiFX’s Bell said traders are continuing to focus on good news, which has kept appetites for riskier assets high, but markets are still incredibly volatile.

“The market is becoming a little bit more comfortable with the idea of a Greek default,” Bell said.

The New Zealand dollar increased to 63.73 euro cents from 63.54 cents yesterday and gained to 52.95 pence from 52.79 pence. It rose to 66.12 yen from 63.54 yen yesterday, and advanced to 77.62 Australian cents from 77.45 cents.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

ETS Review: Modelling Documents Released

Three technical documents are being released to help New Zealanders engage with the Emissions Trading Scheme (ETS) review, Climate Change Minister Paula Bennett says. More>>

ALSO:

Northland: Govt Plan Targets Transport, Web, Maori Assets

The government has released a 10-year plan to attract investors and lift economic growth in Northland, a region that perennially underperforms the rest of the country even while being endowed with natural beauty, productive land, minerals, a potential workforce, scope for manufacturing, forestry and aquaculture, and proximity to Auckland. More>>

ALSO:

Statistics: Unemployment Rate Falls To 5.3 Percent

The unemployment rate fell to 5.3 percent in the December 2015 quarter (from 6.0 percent), Statistics New Zealand said today. This is the lowest unemployment rate since March 2009. There were 16,000 fewer people unemployed than in the September ... More>>

ALSO:

Employment: Labour Urges Talley’s To End AFFCO Lockout

Labour has urged Talley’s to resolve the ongoing industrial dispute with AFFCO workers which is having a severe effect on the employees, their families and their communities, Labour’s Workplace Relations spokesperson Iain Lees-Galloway says. More>>

ALSO:

Three Kings: Govt To Oppose Appeal Blocking $1.2B Auckland Housing Plan

Environment Minister Nick Smith and Housing New Zealand have joined legal proceedings in support of Auckland Council and Fletcher Building opposing a bid by community groups to only allow low-rise housing in a $1.2 billion housing redevelopment on the disused site of the Three Kings quarry. More>>

ALSO:

Transport: Jetstar Expands Regional Network With Three New Routes

More New Zealanders than ever before will have access to Jetstar’s affordable flights when new services take off today from Auckland to New Plymouth and Palmerston North, and Nelson to Wellington. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news