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

 


NZ dollar gains before retail sales as stock markets rise

NZ dollar gains before retail sales as stock markets strengthen

Nov. 14 (BusinessDesk) - The New Zealand dollar gained before retail sales figures that will provide more evidence of the pace of the economy after surprisingly weak employment figures as stronger equity markets overnight gave a bid tone to the local currency.

The kiwi dollar rose to 81.98 US cents from 81.66 cents at 5pm in Wellington yesterday. The trade-weighted index rose to 73.42 from 73.19.

Home Depot led gains on the Dow Jones Industrial Average after posting third-quarter results that beat forecasts, while providing an optimistic picture for the coming months-for its own future and that of the US housing industry in general. At home, retail sales volumes slowed to a 0.5 percent pace in the third quarter for an annual gain of 2.9 percent, according to a Reuters survey.

“The global backdrop remains supportive of the NZD,” said Mike Jones, currency strategist at bank of New Zealand. “A late flourish in stock markets and commodity prices helped the NZD/USD finish the night near the top of its overnight 0.8160-0.8200 range.”

Weak retail sales “would likely encourage the markets to up the odds of a December OCR cut,” he said.

There is a 24 percent chance of a rate cut on Dec. 6, based on the Overnight Index Swap curve and 16 basis points of cuts are seen over the next 12 months.

The New Zealand dollar rose to 78.52 Australian cents from 78.42 cents yesterday before third quarter wage cost data in Australia that’s expected to show the wage price index slowed to a 0.8 percent pace for an annual gain of 3.8 percent.

The kiwi gained to 64.52 euro cents from 64.35 cents and rose to 51.63 British pence from 51.44 pence. The currency rose to 65.07 yen from 64.72 yen.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Alex Swney Pleads Guilty To $2.5M Fraud Charge

Alex Swney, former chief executive of the Auckland city centre business association Heart of the City, has pleaded guilty to dishonestly using documents to obtain $2.5 million. More>>

ALSO:

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Scoop Business: NZ Broadcasters Launch Battle Against Global Mode ISPs

New Zealand broadcasters have confirmed they’ve launched legal proceedings against internet service providers who give customers’ access to “global mode”, which allows customers access to offshore online content, claiming it breaches the local content providers’ copyright. More>>

ALSO:

Sanford: Closure Of Christchurch Mussel Processing Plant Confirmed

The decision comes after a period of consultation with the 232 staff employed at the Riccarton site, who were told on 9 April that Sanford was considering the future of mussel processing in Christchurch. Recent weather patterns had impacted on natural spat (offspring) supply... More>>

ALSO:

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Scoop Business: Reserve Bank’s Spencer Calls On Govt To Rethink Housing Tax

The Reserve Bank has urged the government to take another look at a capital gains tax on investment in housing, allow increased high-density development and cut red tape for planning consents to address an over-heated Auckland property market. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news