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


NZ dollar falls after trade figures meet expectations

NZ dollar falls after trade figures meet expectations, US data looms

By Paul McBeth

April 29 (BusinessDesk) - The New Zealand dollar fell as upbeat local trade figures met analysts’ expectations and ahead of a US consumer confidence survey in the run-up to this week’s Federal Reserve policy review.

The kiwi traded at 85.25 US cents at 5pm in Wellington from 85.28 cents at 8am, down from 85.75 cents yesterday. The trade-weighted index declined to 79.33 from 79.78 yesterday.

New Zealand’s annual trade surplus widened to $805 million as Chinese demand for dairy products helped drive a record $50.06 billion of exports in the 12-month period. That helped support the kiwi dollar ahead of US consumer confidence, which is expected to show improving sentiment in the world’s biggest economy ahead of the Federal Open Market Committee’s policy announcement on Wednesday in Washington.

“The trade balance was pretty much as expected,” said Nick Tvedt, senior corporate FX dealer at HiFX in Auckland. “85.20 (US cents) has decent support (for the kiwi) for the time being – it may have done enough to attract some buyers out of the woodwork.”

Reserve Bank of New Zealand figures showed its high loan-to-value ratio restrictions on mortgages helped slow new low-deposit lending and has reduced house price inflation.

Traders largely ignored an Opposition Labour Party policy announcement planning to overhaul the Reserve Bank Act if it wins this year’s general election. The party would task the bank to add the nation’s external balance to its mandate, while providing a new lever to tweak compulsory savings contributions rather than wholesale interest rates as a policy response.

The kiwi fell to 61.48 euro cents at 5pm in Wellington from 62.03 cents yesterday ahead of the release of European inflation figures.

The local currency fell to 87.36 yen from 87.60 yen yesterday with Japanese banks closed today in observance of Showa Day.

The kiwi fell to 92.18 Australian cents from 92.36 cents yesterday, and dropped to 50.69 British pence from 51.07 pence.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Scoop Business: A Decade Of Government Pre-Seed Investment

More publicly-funded science is being commercialised after a decade of government ‘pre-see’d investment, according to an independent review. More>>


Solid Energy: Plan To Shut Unprofitable Huntly East Mine

Solid Energy, the state-owned coal miner in voluntary administration, plans to shut down its unprofitable Huntly East mine and lay off 65 staff after deciding the site stands "no chance whatsoever" of finding a buyer. More>>


E Tū: Merger Creates NZ's Biggest Private Sector Union

E tū has been created by the merger of the Engineering, Printing and Manufacturing Union and Service and Food Workers’ Union. It represents more than 50,000 working New Zealanders in industries as diverse as aviation, construction, journalism, food manufacturing, mining and cleaning. More>>


Internet: NZ Govt Lifts Target Speeds For Rural Broadband

The government has lifted its expectations on faster broadband speeds for rural New Zealand as it targets increased spending on research and development in the country's information and communications technology sector, which it sees as a key driver for export growth. More>>


Banks: Westpac Keeps Core Government Transactions Contract

The local arm of Westpac Banking Corp has kept its contract with the New Zealand government to provide core transactions, but will have to share peripheral services with its rivals. More>>


Science Investment Plan: Universities Welcome Statement

Universities New Zealand has welcomed the National Statement of Science Investment released by the Government today... this is a critical document as it sets out the Government’s ten-year strategic direction that will guide future investment in New Zealand’s science system. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news