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

 

Budget Policy Statement: Spending Wins Over Tax Cuts; Big Ticket Items Get Boost

Income tax cuts are on hold as the government says “responding to the earthquakes and reducing debt are currently of higher priority”, although election year tax sweeteners remain possible. More>>

ALSO:

Fishy: Is Whitebaiting Sustainable?

The whitebait fry - considered a delicacy by many - are the juveniles of five species of galaxiid, four of which are considered threatened or declining. The SMC asked freshwater experts for their views on the sustainability of the whitebait fishery and whether we're doing enough to monitor the five species of galaxiid that make up whitebait. More>>

ALSO:

Crown Accounts: Smaller-Than-Expected Four-Month Deficit

The New Zealand government's accounts recorded a smaller-than-forecast deficit in the first four months of the fiscal year on a higher-than-expected inflow of corporate and goods and services tax. More>>

ALSO:

On For Christmas: KiwiRail Ferries Back In Full Operation After Quake

KiwiRail’s Interislander ferries are back in full operation for the first time since the Kaikoura earthquake, with the railspan that allows rail wagons to be loaded on the Aratere now restored. More>>

ALSO:

Comerce Commission Investigation: Prosecutions Over Steel Mesh Labelling

Steel & Tube Holdings, along with two other companies, will be prosecuted by the Commerce Commission following the regulator's investigation into seismic steel mesh, while Fletcher Building's steel division has been given a warning. More>>

ALSO:

Wine: 20% Of Marlborough Storage Tanks Damaged By Quake

An estimated 20 percent of wine storage tanks in the Marlborough region, the country’s largest wine producing area, have been damaged by the impact of the recent Kaikoura earthquake. More>>

ALSO:

ACC: Levy Recommendations For 2017 – 2019 Period

• For car owners, a 13% reduction in the average Motor Vehicle levy • For businesses, a 10% reduction in the average Work levy, and changes to workplace safety incentive products • For employees, due to an increase in claims volumes and costs, a 3% increase in the Earners’ levy. More>>

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news