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

 


NZD rises as US trade deficit widens; Singapore holds fire

NZ dollar rises as US trade deficit widens; Singapore holds fire

By Hannah Lynch

Oct 12 (BusinessDesk) - The New Zealand dollar rose after Singapore unexpectedly refrained from monetary stimulus and the US trade deficit in August widened as slower global growth reduced demand for exports.

The New Zealand dollar traded at 81.92 US cents at 5pm, up from 81.78 cents at 8am and 81.80 cents yesterday. The trade weighted index was little changed on 73.11 from 73.01.

Growth-linked currencies such as the New Zealand dollar rose after the Monetary Authority of Singapore left monetary policy unchanged even after its economy shrank 1.5 percent in the September quarter. US Commerce Department figures showed the trade deficit widened 4.1 percent to $44.2 billion from $42.5 billion in July.

"The initial spur came from the Singapore central bank," said Imre Speizer, market strategist at Westpac Banking Corp. "In a wider sense it was bullish for the Asian currencies with the kiwi and the Aussie responding."

"We got a second wind with the trade data around 2.15 this afternoon," Speizer said.

The kiwi fell to 63.35 euro cents from 63.55 cents on speculation indebted nation Spain will seek a bailout after its credit rating was downgraded to one level above junk by Standard & Poor's, spurring bets the region's debt crisis is easing.

"The market will force them to ask for a bailout if they don't," Speizer said. "If they do it soon it is a positive for the kiwi dollar."

There is no significant New Zealand data set for release until Tuesday when the consumer price index by Statistics New Zealand and Australia’s full monetary policy statement are set for release.

The New Zealand dollar stayed under 80 Australian cents, rising to 79.76 cents from 79.53 cents yesterday at 5pm and increased to 64.23 yen from 63.83 yen. It was little changed on 51.12 British pence from 51.05 pence.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Warming: Warming Signs From State Of Climate Report

Climate data from air, land, sea and ice in 2013 'reflect trends of a warming planet' -- says the latest State of the Climate report, launched by U.S. and New Zealand scientists. More>>

ALSO:

Scoop Business: Embrace Falling Home Affordability, Says NZIER

Despair over the inability to afford a house is misplaced and should be embraced as an opportunity to invest in more wealth-creating activity, says the principal economist at the New Zealand Institute of Economic Research, Shamubeel Eaqub. More>>

Productivity Commission: NZ Regulation Not Keeping Pace

New Zealand regulators often have to work with out-of-date legislation, quality checks are under strain, and regulatory workers need better training and development. More>>

ALSO:

Callaghan Innovation: Investment To Help Deepen Innovation Reporting

Callaghan Innovation, the government’s high tech HQ for Kiwi business, is to help deepen New Zealand media coverage of the commercialisation of innovation through an arms-length partnership with independent business news service BusinessDesk. More>>

ALSO:

Tax Credits, Grants: Greens $1Bn R&D Plan

In the Party’s headline economic announcement, the Greens have launched their plan to build a smarter, more innovative economy which has as its centrepiece an additional $1 billion of government investment in research and development (R&D) above current spend, including tax breaks for business. More>>

ALSO:

Inflation: CPI Increases 0.3 Percent In June Quarter

The consumers price index (CPI) rose 0.3 percent in the June 2014 quarter, Statistics New Zealand said today. This follows rises of 0.3 percent the March quarter and 0.1 percent in the December 2013 quarter. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news