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

 


NZ dollar falls as economic growth misses estimates

NZ dollar falls as economic growth misses estimates, fiscal cliff talks drag

By Paul McBeth

Dec. 20 (BusinessDesk) - The New Zealand dollar fell after figures showed the economy grew less than expected in the third quarter, while US policymakers appear bogged near the finish line on talks to avert US$600 billion of automatic tax hikes and spending cuts.

The kiwi fell to 83.26 US cents at 5pm in Wellington from 83.62 cents at 8.30am and 83.91 cents yesterday. The trade-weighted index fell to 74.47 from 74.75 yesterday.

New Zealand's gross domestic product grew 0.2 percent in the three months ended Sept. 30, half the 0.4 percent pace forecast in a Reuters survey and spurred only by a pick-up in construction activity. The local economy has been showing signs of weakness through the middle of the year, with unemployment rate rising to a 13-year high 7.3 percent, and the figure cemented the view that future growth is hanging on the Canterbury reconstruction effort.

The local data comes as investors continue to wait for US legislators to cast aside their partisan brinkmanship and reach a deal to avert the fiscal cliff, which will probably send the world's biggest economy back into recession. Talks between the Democrat White House and the Republican Speaker of the House of Representatives have deteriorated in the past 24 hours, according to a Bloomberg report.

"It's going to come down to what happens on the US side of the equation," said Chris Tennent-Brown, FX economist at Commonwealth Bank of Australia in Sydney. "For the New Zealand side of the equation it's all over now" and the kiwi might have "another nudge down to 83.20 US cents" in Northern Hemisphere trading, he said.

The kiwi fell to 70.28 yen from 70.69 yen yesterday after the Bank of Japan expanded its asset purchase programme by 10 trillion yen to 101 trillion yen after voters in the world's third-biggest economy elected a new, more activist government last weekend.

The kiwi dollar fell to 63.10 euro cents from 63.31 cents and declined to 51.32 British pence from 51.57 pence yesterday. The New Zealand dollar was little changed at 79.71 Australian cents from 79.73 cents.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Maritime: Navigation Safety Review Raises Big Issues For The Govt

Shipping Federation: "The reports makes it clear that the ratification of the Maritime Labour convention (MLC) is long overdue. Only when the MLC is ratified will Maritime NZ be able to inspect and enforce the labour conditions on international ships visiting our ports." More>>

ALSO:

100 Years After Einstein Prediction: Gravitational Waves Found

For the first time, scientists have observed ripples in the fabric of spacetime called gravitational waves, arriving at the earth from a cataclysmic event in the distant universe. This confirms a major prediction of Albert Einstein’s 1915 general theory of relativity and opens an unprecedented new window onto the cosmos. More>>

ALSO:

Farming: Alliance Plans To Start Docking Farmer Payments

Alliance Group, New Zealand's second-largest meat cooperative, plans to start withholding some stock payments to its farmers from next week to bolster its balance sheet and force suppliers to meet their share requirements. More>>

ALSO:

Gambling: SkyCity First Half Profit Rises 30%, Helped By High Rollers

SkyCity anticipates the Auckland business will benefit from government gaming concessions which were triggered on Nov. 11 in recognition of SkyCity’s $470 million Convention Centre development. Morrison said the concessions would allow the Auckland business to lift its activity during peak period, noting it had a record revenue week over the Christmas and New Year period. More>>

ALSO:

Money For Light: Kiwi Scientists Secure Preferential Access To Synchrotron

Science and Innovation Minister Steven Joyce today announced a three-year investment of $2.8 million in the Australian Synchrotron, the largest piece of scientific infrastructure in the Southern Hemisphere, to secure preferential access for Kiwi scientists. More>>

Telco Industry Report: Investment Hits $1.7 Bln A Year

Investment in the telecommunications sector is $1.7 billion a year, proportionately one of the highest levels in the OECD, according to a report released today on the status of the New Zealand sector. More>>

ALSO:

PGPs: New Programme Sets Sights On Strong Wool

A new collaboration between The New Zealand Merino Company (NZM) and the Ministry for Primary Industries (MPI), announced today, aims to deliver premiums for New Zealand's strong wool sector... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news