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: Equity Crowd Funding Carries Risks, High Failure Rate

Equity crowd funding, which became legal in New Zealand this month, comes with a high risk of failure based on figures showing existing forays into social capital have a success rate of less than 50 percent, one new entrant says. More>>

ALSO:

Scoop Business: NZ Migration Rises To 11-Year High In March

The country gained a seasonally adjusted 3,800 net new migrants in March, the most since February 2003, said Statistics New Zealand. A net 400 people left for Australia in March, down from 600 in February, according to seasonally adjusted figures. More>>

ALSO:

Hugh Pavletich: New Zealand’s Bubble Economy Is Vulnerable

The recent Forbes e-edition article by Jesse Colombo assesses the New Zealand economy “ 12 Reasons Why New Zealand's Economic Bubble Will End In Disaster ”, seems to have created quite a stir, creating extensive media coverage in New Zealand. More>>

ALSO:

Thursday Market Close: Genesis Debut Sparks Energy Rally

New Zealand stock rose after shares in the partially privatised Genesis Energy soared as much as 18 percent in its debut listing on the NZX, buoying other listed energy companies in the process. Meridian Energy, MightyRiverPower, Contact Energy and TrustPower paced gains. More>>

ALSO:

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Houses (& Tobacco) Lead Inflation: CPI Up 0.3% In March Quarter

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays. More>>

ALSO:

Notoriously Reliable Predictions: Budget To Show Rise In Full-Time Income To 2018: English

This year’s Budget will forecast wage increases through to 2018 amounting to a $10,500 a year increase in average full time earnings over six years to $62,200 a year, says Finance Minister Bill English in a speech urging voters not to “put all of this at risk” by changing the government. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news