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

 


NZ dollar falls on weak US data, talk of Spanish downgrade

NZ dollar falls as weak US data, rumours of Spanish downgrade sap investor optimism

Oct. 1 (BusinessDesk) - The New Zealand dollar fell after weak US data and speculation Spain's credit rating may be cut to junk eroded investors' appetite for higher-yielding, or riskier, assets.

The kiwi fell to 82.82 US cents at 8.30am from 82.97 cents on Friday in New York, and was little changed at 73.81 on a trade-weighted basis from 73.91 last week.

Wall Street's Standard & Poor's 500 Index fell 0.5 percent on Friday after the Chicago PMI showed shrinking activity last month and weaker-than-expected consumer confidence. Sentiment was dimmed by speculation Moody's Investors Service may cut Spain's government debt to junk.

The yield on Spain's benchmark 10-year government bond fell 1.3 basis points to 5.949 percent. Investors were expecting Spain would seek a formal bailout for its ailing banking system ahead of stress testing last weekend, which showed the nation's lenders have a capital deficit of 59.3 billion euros.

"US data disappointed, and the fact Spain hasn't asked for a bailout and the rumours of a Spanish downgrade were all negatives," said Imre Speizer, market strategist at Westpac Banking in Auckland. "The kiwi hasn't opened with any conviction" and will probably stay in recent trading ranges, he said.

Speizer said the currency may trade between 82.35 US cents and 83.40 cents today.

The currency may extend its rally against its Australian counterpart having touched 80.17 Australian cents in today's session, the first time it's broken above 80 cents in more than a year. Australian markets are closed for the Labour Day holiday ahead of tomorrow's central bank meeting.

Markets are undecided on whether the Reserve Bank of Australia will cut its 3.5 percent target cash rate.

The kiwi recently traded at 79.83 Australian cents from 79.88 cents last week. The currency was little changed at 64.60 yen from 64.58 yen last week, and traded at 64.45 euro cents from 64.47 cents. It was almost unchanged at 51.28 British pence from 51.27 pence.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Media: Julian Wilcox Leaves Māori TV

Māori Television has confirmed the resignation of Head of News and Production Julian Wilcox. Mr Maxwell acknowledged Mr Wilcox’s significant contribution to Māori Television since joining the organisation in 2004. More>>

ALSO:

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news