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

 

Wine: 20% Of Marlborough Storage Tanks Damaged By Quake

An estimated 20 percent of wine storage tanks in the Marlborough region, the country’s largest wine producing area, have been damaged by the impact of the recent Kaikoura earthquake. More>>

ALSO:

ACC: Levy Recommendations For 2017 – 2019 Period

• For car owners, a 13% reduction in the average Motor Vehicle levy • For businesses, a 10% reduction in the average Work levy, and changes to workplace safety incentive products • For employees, due to an increase in claims volumes and costs, a 3% increase in the Earners’ levy. More>>

Women's Affairs: Government Accepts Recommendations On Pay Equity

The Government will update the Equal Pay Act and amend the Employment Relations Act to implement recommendations of the Joint Working Group on Pay Equity. More>>

ALSO:

Immigration: Increase In Seasonal Workers For RSE

The current cap will be increased by 1,000 from 9,500 to 10,500 RSE workers for the 2016-17 season. Mr Woodhouse says the horticulture and viticulture industry is New Zealand’s fourth largest export industry, producing almost $5 billion in exports. More>>

ALSO:

Hurunui: Crown Irrigation Invests Up To $3.4m In North Canterbury

Crown Irrigation Investments will invest up to $3.4m in the Hurunui Water Project, an irrigation scheme that will be capable of irrigating up to 21,000 hectares on the south side of the Hurunui River in North Canterbury. More>>

ALSO:

Not So Great:Butterfly Eradication Success

The invasive pest great white butterfly has been eradicated from New Zealand in a world-first achievement, Primary Industries Minister Nathan Guy and Conservation Minister Maggie Barry say. More>>

Gordon Campbell: On The Government’s Tax Cuts Fixation

Long before the earthquake hit, the dodginess of the government tax cuts programnme was evident in the language of its packaging. It is being touted as a “tax cuts and family care” package... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news