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

 


NZ dollar rises against weather-weakened greenback

NZ dollar rises against greenback weakened by sluggish retail sales, winter storms

By Tina Morrison

Feb 14 (BusinessDesk) – The New Zealand dollar rose as weaker US retail sales and concerns about disruption to the economy from winter storms weighed on the greenback.

The kiwi rose to 83.52 US cents at 8am in Wellington from 83.11 cents at 5pm yesterday. The trade-weighted index advanced to 78.50 from 78.28 yesterday.

The US dollar weakened after a report showed retail sales declined by the most in 10 months amid signs that adverse winter weather conditions are weighing on economic growth as yet another storm battered the eastern US. Traders are concerned that the impact of winter weather will slow economic growth in the world’s largest economy, and the key payrolls survey this week will probably show the negative impact of people failing to get to work.

“The US dollar is broadly weaker across the board,” said ANZ Bank New Zealand senior FX strategist Sam Tuck. “The weaker US retail sales and the fact that New York and Washington are under six inches plus of snow right at the moment during payrolls survey week is weighing on peoples’ mind about when we could potentially get some good economic news out of the US.

“When people can’t get to work you lose production, you lose activity and people don’t spend,” Tuck said. “If it goes on for long enough it is a real impact. That broadly keeps the US dollar from appreciating.”

The New Zealand dollar touched a fresh two-week high of 93.14 Australian cents early this morning, and was trading at 92.91 cents at 8am from 92.89 cents at 5pm yesterday after worse-than-expected employment figures in Australia yesterday raised doubts about the pace of economic recovery.

“We saw the weaker Aussie employment add some buying pressure into the New Zealand dollar yesterday afternoon as people sold Aussie and bought Kiwi so part of the kiwi strength is due to that,” said Tuck.

In New Zealand today, data is released on food prices for January at 10:45am while the Real Estate Institute of New Zealand may publish its latest report on house sales for January around midday.

Traders will be eyeing a speech in Sydney by Reserve Bank of Australia assistant governor (economic) Christopher Kent on ‘The Resources Boom and the Australian dollar”, as well as data on Chinese inflation, Eurozone GDP, and US industrial production and the University of Michigan consumer confidence survey.

The kiwi advanced to 50.17 British pence from 49.98 pence. Comments from the Bank of England chief economist Spencer Dale that market pricing for interest rate hikes in spring 2015 seem “reasonable” and should underpin demand for sterling, he told BBC Radio 5.

The kiwi was little changed at 61.08 euro cents from 61.01 cents yesterday and increased to 85.33 yen from 84.87 yen.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Scoop Business: NZ-Korea FTA Signed Amid Spying, Lost Sovereignty Claims

A long-awaited free trade agreement between New Zealand and South Korea has been signed in Seoul by Prime Minister John Key and the Korean president, Park Geun-hye. More>>

ALSO:

PM Visit: NZ And Viet Nam Agree Ambitious Trade Target

New Zealand and Viet Nam have agreed an ambitious target of doubling two-way goods and service trade to around $2.2 billion by 2020, Prime Minister John Key has announced. More>>

ALSO:

Scoop Business: NZ Economy Grows 0.8% In Fourth Quarter

The New Zealand economy expanded in the fourth quarter as tourists drove growth in retailing and accommodation, and property sales increased demand for real estate services. More>>

ALSO:

Scoop Business: RBNZ’s Wheeler Keeps OCR On Hold, No Rate Hikes Ahead

The Reserve Bank has removed the prospect of future interest rate hikes from its forecast horizon as a strong kiwi dollar and cheap oil hold down inflation, and the central bank ponders whether to lower its assessment of where “neutral” interest rates should be. The kiwi dollar gained. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news