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

 

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Reserve Bank: Labour Calls For Monetary Policy To Expand Goals

Labour's comments follow a speech today by RBNZ governor Graeme Wheeler in which Wheeler sought to answer critics who variously say he should stop lowering interest rates, lower them faster, or that inflation-targeting should no longer be the primary goal of the central bank's activities. More>>

ALSO:

BSA Extension And Sunday Morning Ads: Digital Convergence Bill Captures Online Content

Broadcasting Minister Amy Adams has today announced the Government’s plans to update the Broadcasting Act to better reflect today’s converged market... The Government considered four areas as part of its review into content regulation: classification requirements, advertising restrictions, election programming and contestable funding. More>>

ALSO:

March 2017: Commerce Commission Delays Decision On Fairfax-NZME

The Commerce Commission has delayed its decision on the proposed merger between NZME and Fairfax Media's New Zealand assets, saying the deal is complex and it needs more time to assess the impact on both news content and the advertising market. More>>

ALSO:

Plan Plan: Permanent Independent Hearings Panel Proposed For Planning

The Productivity Commission recommends creating a permanent independent hearings panel like the one that cut through local politics to settle Auckland’s Unitary Plan, for the whole country. More>>

ALSO:

Statistics: NZ Jobless Rate Falls To 5.1% Under New Methodology

New Zealand's unemployment rate fell more than expected in the second quarter as Statistics New Zealand adopted a new way of measuring the labour market to bring the country in line with international practices, and while a growing economy continued to support jobs growth. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news