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

 


NZ dollar falls back below 83 cents as commodities slip

NZ dollar falls back below 83 cents as commodities slip, US GDP misses estimates

March 1 (BusinessDesk) – The New Zealand dollar slipped back below 83 US cents after US growth figures came in lower than economists were expecting, weighing on commodities. The International Monetary Fund said it may cut its US forecast if spending cuts kick in on March 1.

The kiwi dollar fell to 82.73 US cents from 83.15 cents at 5pm in Wellington yesterday. The trade-weighted index fell to 75.83 from 75.96.

Revised figures showed the US economy grew at a 0.1 percent annual pace in the fourth quarter, missing estimates of 0.5 percent growth. That weighed on prices of commodities including oil. Some US$85 billion of so-called sequester spending cuts are due to start this month, which the IMF says could dent US and global growth.

“The kiwi has run into sellers above 83 cents,” said Tim Kelleher, head of institutional FX sales at ASB Institutional. “Commodities are quite heavy today – the Aussie is lower as well.”

The kiwi may trade in a range of 82.40 US cents to 82.90 cents today, with buyers around 82.50 cents, Kelleher said.

Political stalemate in Italy, where no one party won a clear majority in elections, is also weighing on sentiment.

The kiwi traded at 63.26 euro cents from 63.23 cents and fell to 54.49 British pence from 54.81 pence. The local currency was little changed at 80.91 Australian cents and slipped to 76.61 yen from 76.76 yen.

Traders will be watching for fourth-quarter terms of trade due out today. Westpac Banking Corp is expecting “a sub-consensus flat result reflecting lower commodity prices last year.”

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news