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

 

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news