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

 

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Houses (& Tobacco) Lead Inflation: CPI Up 0.3% In March Quarter

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays. More>>

ALSO:

Notoriously Reliable Predictions: Budget To Show Rise In Full-Time Income To 2018: English

This year’s Budget will forecast wage increases through to 2018 amounting to a $10,500 a year increase in average full time earnings over six years to $62,200 a year, says Finance Minister Bill English in a speech urging voters not to “put all of this at risk” by changing the government. More>>

ALSO:

Prices Up, Volume Down: March NZ House Sales Drop 10% As Loan Curbs Bite

New Zealand house sales dropped 10 percent in March from a year earlier as the Reserve Bank’s restrictions on low-equity mortgages continue to weigh on sales of cheaper property. More>>

ALSO:

Scoop Business: Chorus To Appeal Copper Pricing Judgment

Chorus will appeal a High Court ruling upholding the Commerce Commission’s determination setting the regulated prices on the telecommunications network operator’s copper lines. More>>

ALSO:

Earlier:

Cars: Precautionary Recalls Announced For Toyota Vehicles

Toyota advises that a number of its New Zealand vehicles are affected by a series of precautionary global recalls. Toyota New Zealand General Manager Customer Services Spencer Morris stressed that the recalls are precautionary. More>>

ALSO:

'Gardening Club': Air Freight Cartel Nets Almost $12 Million In Penalties

The High Court in Auckland has today ordered Swiss company Kuehne + Nagel International AG to pay a penalty of $3.1 million plus costs for breaches of the Commerce Act. Kuehne + Nagel’s penalty brings the total penalties ordered in this case to $11.95 million ... More>>

ALSO:

Crown Accounts: Revenue Below Projections

Core Crown tax revenue has increased by $1.9 billion (or 5.0%) compared to the same time last year. However this was $1.1 billion less than expected and is reflected across most tax types, continuing the pattern of recent months. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news