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


NZ dollar bounces off lows as NZ budget keeps surplus target

NZ dollar bounces off lows as NZ budget keeps surplus target, greenback support stumbles

By Paul McBeth

May 16 (BusinessDesk) - The New Zealand dollar came off its recent lows as Finance Minister Bill English’s budget kept the operating surplus target for 2014/15 intact, and as support for the greenback stumbled after US manufacturing data missed expectations yesterday.

The kiwi rose to 82.48 US cents at 5pm in Wellington from 82.25 cents at 8am, and 82.13 cents yesterday. The trade-weighted index gained to 77.60 from 77.13.

The New Zealand Treasury forecasts an operating surplus before gains and losses of $75 million in 2014-2015, in line with the estimate in December’s Half Year Economic and Fiscal Update. Growth expectations were largely unchanged on the pending release of a tidal wave of residential investment from the Canterbury rebuild, despite drought eating into gross domestic product.

The Dollar Index, a measure of the greenback against a basket of currencies, fell to 83.80 from 84.04 after New York manufacturing unexpectedly shrank last month and industrial production showed a bigger than anticipated contraction.

“There’s a ton of US data tonight and if we get more of the same of last night’s performance, that should push down the US dollar and help the kiwi bounce a bit more,” said Imre Speizer, market strategist at Westpac Banking Corp. “It shouldn’t be too much more than 83.25 US cents.”

The GDT-TWI Price Index fell 2.1 percent compared to the last sale two weeks ago on Fonterra Cooperative Group’s GlobaDairyTrade platform as a resurgent US dollar weighed more generally on commodity prices. The average winning price fell to US$4,549 a tonne from US$4,597 a tonne. The price reached US$4,968 a tonne last month, the highest since the GDT platform began in July 2008. Whole milk powder, the biggest product by volume, fell 1.7 percent to US$4,722 a tonne.

The New Zealand dollar gained to 83.44 Australian cents from 83.01 cents yesterday and rose to 84.30 yen from 83.90 yen. It increased to 64.07 euro cents from 63.49 cents yesterday and gained to 54.16 British pence from 53.92 pence.


© Scoop Media

Business Headlines | Sci-Tech Headlines


ScoopPro: Helping The Education Sector Get More Out Of Scoop

The ScoopPro professional license includes a suite of useful information tools for professional users of Scoop including some specifically for those in the education sector to make your Scoop experience better. More>>

Big Tax Bill Due: Destiny Church Charities Deregistered

The independent Charities Registration Board has decided to remove Destiny International Trust and Te Hahi o Nga Matamua Holdings Limited from the Charities Register on 20 December 2017 because of the charities’ persistent failure to meet their annual return obligations. More>>

57 Million Users' Data: Uber Breach "Utterly Preventatable"

Cybersecurity leader Centrify says the Uber data breach of 57 million customer and driver records - which the ride-hailing company hid for more than a year - was “utterly preventable”. More>>

Scoop 3.0: How You Can Help Scoop’s Evolution

We have big plans for 2018 as we look to expand our public interest journalism coverage, upgrade our publishing infrastructure and offer even more valuable business tools to commercial users of Scoop. More>>

Having A Cow? Dairy Product Prices Slide For Fourth Straight Auction

Dairy product prices fell at the Global Dairy Trade auction, retreating for the fourth straight auction amid signs of increased production... Whole milk powder fell 2.7 percent to US$2,778 a tonne. More>>


Statistics: Butter At Record $5.67/Block; High Vegetable Prices

Rising dairy prices have pushed food prices up 2.7 percent in the year to October 2017, Stats NZ said today. This followed a 3.0 percent increase in the year to September 2017. More>>


Science: New Research Finds Herbicides Cause Antibiotic Resistance

New University of Canterbury research confirms that the active ingredients of the commonly used herbicides, RoundUp, Kamba and 2,4-D (glyphosate, dicamba and 2,4-D, respectively), each alone cause antibiotic resistance at concentrations well below label application rates. More>>


  • Bill Bennett on Tech