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

 


NZ dollar falls on Fed, on-track economic growth

NZ dollar falls as economic growth meets forecasts, Fed sees faster rate hikes next year

By Paul McBeth

March 20 (BusinessDesk) - The New Zealand dollar fell as local economic growth met market expectations, while a more upbeat Federal Reserve signalled steeper interest rate increases as the world’s biggest economy shows more signs of life.

The kiwi fell to 85.24 US cents at 5pm in Wellington from 85.51 cents at 8am and 86.21 cents yesterday. The trade-weighted index declined to 79.88 from 80.22 yesterday.

New Zealand’s economy grew 0.9 percent in the three months ended Dec. 31, led by an expanding manufacturing sector, according to Statistics New Zealand. That was largely in line with market expectations, leaving traders to mull over the impact of the Fed’s more optimistic view of the US economy. The Fed raised its projections for interest rate hikes next year, spurring demand for the greenback.

“You’ll get more exaggerated moves (from local data) from lower numbers than higher numbers in these key releases because of how much good news is fully price in the kiwi,” said Alex Hill, head of dealing at HiFX in Auckland. “The US dollar had a good move, and in the short-term things are really down to them – everyone’s back on the tapering theme with the focus back on US data.”

HiFX’s Hill said the kiwi has settled very quickly into a new range between 84.50 US cents and 86.50 cents.

Traders will be watching US data during the Northern Hemisphere session, including new jobless claims, home sales and the Philadelphia Fed business outlook survey.

The kiwi dollar increased to 94.54 Australian cents at 5pm in Wellington from 94.40 cents yesterday and was little changed at 87.23 yen from 87.21 yen yesterday. It slipped to 51.54 British pence from 51.87 pence and declined to 61.63 euro cents from 61.81 cents.

The New Zealand and Chinese governments this week agreed to allow direct trading between the nations’ currencies, and the kiwi fell to 5.3064 yuan from 5.3324 yuan yesterday.

The yuan is pegged to movements in the US dollar. China this week doubled the yuan’s trading band against the greenback to 2 percent on either side of a daily reference rate set by the central bank.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news