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

 

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Scoop Business: NZ-Korea FTA Signed Amid Spying, Lost Sovereignty Claims

A long-awaited free trade agreement between New Zealand and South Korea has been signed in Seoul by Prime Minister John Key and the Korean president, Park Geun-hye. More>>

ALSO:

PM Visit: NZ And Viet Nam Agree Ambitious Trade Target

New Zealand and Viet Nam have agreed an ambitious target of doubling two-way goods and service trade to around $2.2 billion by 2020, Prime Minister John Key has announced. More>>

ALSO:

Scoop Business: NZ Economy Grows 0.8% In Fourth Quarter

The New Zealand economy expanded in the fourth quarter as tourists drove growth in retailing and accommodation, and property sales increased demand for real estate services. More>>

ALSO:

Scoop Business: RBNZ’s Wheeler Keeps OCR On Hold, No Rate Hikes Ahead

The Reserve Bank has removed the prospect of future interest rate hikes from its forecast horizon as a strong kiwi dollar and cheap oil hold down inflation, and the central bank ponders whether to lower its assessment of where “neutral” interest rates should be. The kiwi dollar gained. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news