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


NZ dollar falls as global growth outlook bolsters greenback

NZ dollar weakens as greenback bolstered on optimism about global growth

By Tina Morrison

May. 23 (BusinessDesk) - The New Zealand dollar weakened amid broad US dollar strength as improvements in manufacturing indicators point to a revival in economic growth.

The kiwi slipped to 85.61 US cents at 8am in Wellington from 85.82 cents at 5pm yesterday. The trade-weighted index edged lower to 79.90 from 79.98 yesterday.

Better-than-expected manufacturing indicators out of the US and China, the world's two largest economies, bolstered optimism about global economic growth, pushing up Wall Street and the US dollar. In China, a preliminary purchasing managers’ index from HSBC and Markit climbed to 49.7 in May, the highest level in five months, while the Markit US manufacturing PMI also beat expectations at 56.2, showing output rising at the fastest pace for three years.

"Broadly speaking we saw the US dollar strengthen overnight, underpinned by global economic factors. There are less fears around global growth," said Stuart Ive, senior advisor at OMF. "The US dollar is gaining a bit of strength and hence why we see the kiwi a fraction lower from yesterday."

With a lack of key data scheduled for release today, the kiwi will probably trade in a tight range of 85.45 US cents to 85.80 cents, Ive said.

In New Zealand today, traders will be eyeing the latest ANZ consumer confidence survey

Tonight, the focus will be on the German IFO business survey and data on US new home sales.

The New Zealand dollar weakened to 87.09 yen from 87.26 yen yesterday, advanced to 92.77 Australian cents from 92.51 cents, edged lower to 50.74 British pence from 50.80 pence and slipped to 62.69 euro cents from 62.75 cents.


© 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