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

 


NZ dollar slips vs. greenback ahead of Fed’s beige book

NZ dollar slips vs. greenback ahead of Fed’s beige book, US manufacturing figures

By Paul McBeth

Jan. 15 (BusinessDesk) - The New Zealand dollar slipped against the greenback ahead of the Federal Reserve’s regional outlook, known as the beige book, and US manufacturing figures, both of which will likely show more strength in the world’s biggest economy.

The kiwi fell to 83.36 US cents at 5pm in Wellington from 83.77 cents at 8am and 83.70 cents yesterday. The trade-weighted index was 78.87 at 5pm from 78.82 yesterday, having pushed near a post-float high earlier in the day.

The Dollar Index, a measure of the greenback against a basket of currencies, extended gains in local trading, and was recently at 80.86, having found support with better than expected consumer spending figures yesterday. That comes ahead of the Fed’s beige book and the New York Empire manufacturing survey, which will be looked on for signs of strength after a disappointing employment figures last Friday, which some analysts have put down to the harsh winter conditions.

“People will be looking for signs of continued US strength and/or signs of weather distortions,” said Sam Tuck, senior FX strategist at ANZ New Zealand in Auckland. “There’s potential (for more US dollar strength) unless we see distortions in the January data” which would weigh on the kiwi in the short-term, he said.

Government figures today showed food prices slipped in December for their third monthly decline, ahead of the release of the fourth quarter consumer price index next week. Investors are keeping a close watch on New Zealand’s pace of inflation, which may spur an early rate hike by the Reserve Bank if it starts accelerating too much.

Figures yesterday showing upbeat local business confidence and increasing property values continued to underline the divergent fortunes between the New Zealand and Australian economies, which has seen the cross-rate reach new five-year highs. The kiwi climbed to 93.40 Australian cents at 5pm in Wellington from 92.60 cents yesterday.

ANZ’s Tuck said the cross-rate has probably gone too far on a long-term basis, though the elevated level could persist over a shorter timeframe.

The local currency climbed to 87 yen at 5pm in Wellington from 86.53 yen yesterday, and was little changed at 61.13 euro cents from 61.25 cents yesterday. It fell to 50.76 British pence from 51.08 pence yesterday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Media: Fairfax Moves To Create Modern Newsroom

Fairfax Media New Zealand continues its newsroom transformation this week, with a proposal to further organise its editorial operations into focused, local teams and specialist national topic areas. More>>

ALSO:

Dairy: Fonterra Forecast For 2015/16 Season

Fonterra Co-operative Group Limited has today reduced its forecast Farmgate Milk Price for the 2014/15 season to $4.40 per kgMS. Along with its previously announced forecast dividend range of 20-30 cents per share, the change amounts to a forecast ... More>>

ALSO:

BusinessDesk: SkyCity Lifts Minimum Convention Centre Investment To $430M

SkyCity Entertainment Group, the casino operator, has lifted the minimum it will invest in the Auckland International Convention Centre to $430 million and said total costs including land may be $450 million to $470 million. More>>

Statistics: Drop In Dairy Prices Leads Fall In Exports

Total goods exports fell $240 million (5.5 percent) to $4.2 billion in April 2015 compared with April 2014, Statistics New Zealand said today. More>>

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>


BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>

BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news