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

 

ICT Innovation: Six NZ Finalists In World Summit Awards

The awards are a global showcase of 40 projects, across eight categories, with a special emphasis on those which show the benefits of information and communication technology for the development of communities. New Zealand has finalists in six of the eight categories. More>>

ALSO:

Final Frontier: Rocket Lab And NASA Sign Commercial Space Launch Agreement

Rocket Lab has signed a Commercial Space Launch Act Agreement with the National Aeronautics and Space Administration (NASA). The agreement enables Rocket Lab to use NASA resources - including personnel, facilities and equipment - for launch and reentry efforts. More>>

ALSO:

Scoop Business: Wheeler Downplays Scope For ‘Large’ Rates Fall

Reserve Bank governor Graeme Wheeler says some market commentators are predicting further declines in interest rates that would only make sense for an economy in recession, although some easing is likely to be needed to maintain New Zealand’s economic growth. More>>

ALSO:

Ruataniwha Dam: Consent Conditions Could Mean Reduced Intensity

Legal advice sought by the Hawke’s Bay Regional Council on the Ruataniwha Dam consent conditions has confirmed that farmers who sign up to take water from the dam could be required to reduce the intensity of their farming operation to meet the catchment’s strict nitrogen limit. More>>

Health And Safety: Bill Now Sees Rules Relaxed For Small Businesses

Health and safety law reform sparked by the Pike River coalmine disaster has been reported back from the industrial relations select committee with weakened requirements on small businesses to appoint health and safety representatives and committees. More>>

ALSO:

Bearing Fruit: Annual Fruit Exports Hit $2 Billion For First Time

The value of fruit exported rose 20 percent (up $330 million) for the June 2015 year when compared with the year ended June 2014. Both higher prices and a greater quantity of exports (up 9.0 percent) contributed to the overall rise. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news