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

 

NZ dollar consolidates after falling late last week

NZ dollar consolidates after falling late last week

Jan 14 (BusinessDesk) - The New Zealand dollar nudged higher on Monday after falling late last week and a test of higher levels is in prospect this week if data is supportive.

The kiwi was at 84.02 US cents at 5pm, up from 83.71 US cents at 8am but still down from 84.25 US cents at 5pm on Friday.

The NZIER business confidence survey and a residential property market report on Tuesday morning will provide fresh information on the state of the economy, as will Friday’s December quarter inflation statistics.

A 0.3 percent rise in retail card spending in December revealed by Statistic New Zealand on Monday did nothing to alter ASB’s view that the official cash rate will remain on hold until December 2013.

“A trend of gradually improving retail spending poses little concern to the Reserve Bank’s inflation outlook,” Daniel Smith, an economist at ASB Institutional said.

Traders are waiting to see if buyers re-emerge after a sell-off in the kiwi dollar late last week while keeping a wary eye on commodity prices and the performance of US banks due to report this week.

Imre Speizer at Westpac said the NZ dollar reversed from 84.61 late last week on profit-taking and after an above-expectation inflation report form China dampened expectations of a future stimulus.

He noted that the Tianjin iron ore price also fell 2.1 percent, halting a 37 percent rally since December 1.

“Fedspeak tonight from Bernanke and other doves should attract attention,” he said.

US Federal Reserve boss Ben Bernanke is giving his first public speech since December’s FOMC notes were released.

The trade-weighted index fell to 75.32 from 75.61 on Friday.

The kiwi ran up late in the day to 75.31 yen from 74.95 on Friday. It was at 62.71 euro from 63.56 on Friday and unchanged from Friday at 79.62 Australian cents.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Quake Insurance: Reforms To EQC Act Announced

· Increasing the monetary cap from $100,000 (plus GST) to $150,000 (plus GST) for EQC building cover.
· Clarifying EQC land cover is for natural disaster damage that directly affects the insured residence or access to it... More>>

ALSO:

Reserve Bank: Official Cash Rate Unchanged At 1.75 Percent

Global economic growth has increased and become more broad-based. However, major challenges remain with on-going surplus capacity and extensive political uncertainty... More>>

Kaikōura Earthquake: Private Insurers Receive $1.8b Claims

Insurance Council Chief Executive Tim Grafton said most is for commercial loss at $1.36 billion, with residential claims amounting to over $460 million. “...We have a high level of confidence that most people will have received settlement offers by the end of this year." More>>

ALSO:

Forms And Data: New Proposals To Simplify Personal Income Tax

The Government is proposing to make tax simpler for individuals, with people whose only income is from a salary, wages or investments no longer being required to file tax returns to receive tax refunds or to calculate any additional tax. More>>

OECD: NZ Economic Expansion Faces Long Term Challenges

The OECD Economic Survey of New Zealand discusses the gap between the strong short-term outlook and long-term challenges posed by low productivity growth and a changing labour market. More>>

ALSO:

GDP: