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.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news