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

 

China Shopping: NZ-China FTA Upgrade Agreed Among Slew Of New Deals

New Zealand Prime Minister Bill English and China Premier Li Keqiang signed off a series of cooperation deals spanning trade, customs, travel and climate change and confirmed commencement of official talks on an upgrade to the nine-year old free-trade agreement between the two countries. More>>

ALSO:


Media: TVNZ Flags Job Cuts To Arrest Profit Decline

Chief executive Kevin Kenrick said the changes were aimed at creating "a sustainable future video content business for TVNZ in an ever-changing media market." More>>

ALSO:

Reserve Bank: Wheeler Keeps OCR At 1.75%

Reserve Bank governor Graeme Wheeler kept the official cash rate unchanged at 1.75 percent, as expected, and reiterated his view that the benchmark rate doesn't need shifting for the foreseeable future. More>>

ALSO:

Trade Plans: Prime Minister's Speech To International Business Forum

"The work to improve public services, build infrastructure, and solve social problems is possible only because we have enjoyed sustained, solid economic growth. A big reason for that is the Government’s consistent agenda of economic reform, and our determination to open up more opportunities for trade with the world." More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news