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


NZ dollar climbs after slower than expected US growth

NZ dollar climbs after slower than expected US growth, Fed sticks to status quo

By Paul McBeth

May 1 (BusinessDesk) - The New Zealand dollar climbed above 86 US cents after the harsh US winter slowed growth more than expected in the world’s biggest economy and the Federal Reserve continued to trim its money printing programme.

The kiwi climbed to 86.21 US cents at 8am in Wellington from 85.63 cents yesterday. The trade-weighted index advanced to 80.08 from 79.68.

The greenback tumbled after US gross domestic product grew an annualised 0.1 percent in the March quarter, slowing from an annualised pace of 2.6 percent in the December quarter and below the 1.2 percent forecast by economists. The harsh winter conditions weighed on the data, and forward looking indicators within the series were more upbeat. After the GDP numbers, the Federal Open Market Committee kept the key rate near zero, trimming its quantitative easing programme by US$10 billion to $45 billion as expected.

“The US is in a deeper hole than we thought and climbing out of it, because of the increased depth, is going to take longer,” said Sam Tuck, senior FX strategist at ANZ Bank New Zealand. “The US data, while remaining optimistic should ensure carry and growth for New Zealand dollar investors remain attractive for a while.”

Traders will be watching the US ISM manufacturing survey for more signs of life in the world’s biggest economy ahead of the Friday non-farm payrolls report. European markets will be closed on Thursday for the May Day holiday.

Chinese manufacturing data will be the main event in the local trading session, with analysts expecting industrial production to remain flat in the world’s second biggest economy.

The kiwi gained to 88.12 yen at 8am in Wellington from 87.65 yen yesterday, and rose to 92.78 Australian cents from 92.19 cents. It increased to 62.14 euro cents from 62.01 cents yesterday, and advanced to 51.07 British pence from 50.87 pence.


© Scoop Media

Business Headlines | Sci-Tech Headlines


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Health: New Zealand's First ‘No Sugary Drinks’ Logo Unveiled

New Zealand’s first “no sugary drinks logo” has been unveiled at an event in Wellington... It will empower communities around New Zealand to lift their health and wellbeing and send a clear message about the damage caused by too much sugar in our diets. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news