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


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>>


Scouring: Cavalier Merger Would Extract 'Monopoly Rents' - Godfrey Hirst

A merger of Cavalier Wool Holdings and New Zealand Wool Services International's two wool scouring operations would create a monopoly, says carpet maker Godfrey Hirst. The Commerce Commission on Friday released its second draft determination on the merger, maintaining its view that the public benefits would outweigh the loss of competition. More>>


Scoop Review Of Books: She Means Business

As Foreman says in her conclusion, this is a business book. It opens with a brief biographical section followed by a collection of interesting tips for entrepreneurs... More>>


Hourly Wage Gap Grows: Gender Pay Gap Still Fixed At Fourteen Percent

“The totally unchanged pay gap is a slap in the face for women, families and the economy,” says Coalition spokesperson, Angela McLeod. Even worse, Māori and Pacific women face an outrageous pay gap of 28% and 33% when compared with the pay packets of Pākehā men. More>>


Housing: English On Housing Affordability And The Economy

"Long lead times in the planning process tend to drive prices higher in the upswing of the housing cycle. And those lead times increase the risk that eight years later, when additional supply arrives, the demand shock that spurred the additional supply has reversed. The resulting excess supply could produce a price crash..." More>>


Sweet Health: Sugary Drinks Banned From Hospitals And Health Boards

All hospitals and DHBs are expected to kick sugary drinks out of their premises. University of Auckland researcher, Dr Gerhard Sundborn who also heads public health advocacy group “FIZZ”, says he welcomes the initiative. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news