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

 


NZ dollar little changed ahead of GDP data

NZ dollar little changed ahead of GDP data

By Suze Metherell

June 18 (BusinessDesk) - The New Zealand dollar was little changed ahead of data due tomorrow which is expected to show accelerating growth in the domestic economy, which may cause the dollar to climb above 87 cents.

The kiwi edged higher to 86.58 US cents at 5pm in Wellington, from 86.48 cents at 8am and 86.56 at 5pm yesterday. The trade-weighted index was 80.82 from 80.74 this morning and 80.70 yesterday.

Government data due tomorrow will probably show economic growth accelerated in the first quarter on increased construction activity, supporting the Reserve Bank's view that it must press on with interest rate increases to keep inflation at bay. Gross domestic product grew 1.1 percent in the first three months of the year, from a 0.9 percent pace in the fourth quarter of 2013, according to the central bank's forecast. That would mark the fifth quarter with growth of 1 percent or above in the past six years.

After the GDP announcement "it could have a spike through 87 cents. My own view which is purely speculative, is that these are good levels on the week, with a one to two week time frame to sell the kiwi," said James Davies, senior dealer at OMF. "The speculative market is quite long on the kiwi, meaning they've already bought it."

Last week, the kiwi rose 1 US cent and has remained at elevated levels after the Reserve Bank hiked the official cash rate for a third time this year and affirmed its track for future rates. It said the economy's expansion had "considerable momentum" and raised its estimate for growth in the first half of the year to 4 percent from 3.5 percent.

In contrast, the central bank's trans-Tasman counterpart has kept rates at a historic low, and minutes to this month's meeting showed the bank had a pessimistic view of Australia's economic growth.

The New Zealand dollar was a touched a three-week high of 92.82 Australian cents during the day, trading at 92.73 cents at 5pm, from 92.65 cents at 8am and 92.49 cents yesterday.

The local currency rose to 88.54 yen from 88.34 yen this morning and 88.26 yen yesterday. The kiwi was little changed at 63.91 euro cents from 63.87 cents this morning, and 63.84 yesterday. The New Zealand dollar edged higher to 51.03 British pence from 51 pence this morning and yesterday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Commerce: Supermarket Inquiry Finds No Breaches By Countdown

The Commerce Commission inquiry into anti-competitive behaviour by Countdown supermarkets, alleged by former Labour Party MP Shane Jones, has found nothing to warrant prosecution, although it warns supermarkets to take care in the way they communicate... More>>

ALSO:

Crown Accounts: English Flags ‘Challenge’ To Budget Surplus

Finance Minister Bill English is warning next month’s half yearly fiscal and economic update from the Treasury may not forecast a budget surplus, saying that returning the government’s accounts to surplus in 2015 will be “a challenge”, given the decline in commodity prices and weak global inflation. More>>

ALSO:

March 2015: Netflix To Launch In Australia And New Zealand

World’s Leading Internet Television Network to Offer Original Series, Movies, Documentaries, Stand-Up Comedy Specials and TV Shows for Low Monthly Price More>>

ALSO:

Price Of Cheese (Is Up): Dairy Product Prices Fall To Five-Year Low

Dairy product prices fell in the latest GlobalDairyTrade auction to the lowest level in more than five years, led by declines in rennet casein and skim milk powder. More>>

ALSO:

Gordon Campbell: On The Australians Scoring Trade Points Against Us With The Chinese

It hasn’t been a great year for Trade Minister Tim Groser... To top it off, Australia has just signed a FTA with China that has far better provisions on dairy exports than what New Zealand currently enjoys in our own FTA with China. More>>

ALSO:

Iwi & Local Consultation: Oil And Gas Block Offer 2015 Begins

Energy and Resources Minister Simon Bridges today announced the start of the Block Offer 2015 process for awarding oil and gas exploration permits. More>>

Industrial Action: Stats NZ Throwing Public Money Away Duplicating Data

The Public Service Association (PSA) says Statistics NZ are throwing money away by collecting the same data twice for official statistics such as the Consumer Price Index... As part of the ongoing industrial action, field interviewers who are PSA members are continuing to collect data, but are not sending it through to Statistics NZ. More>>

ALSO:

Other Stats:

Space: Rosetta's 'Philae' Makes Historic First Landing On A Comet

After more than a decade traveling through space, a robotic lander built by the European Space Agency has made the first-ever soft landing of a spacecraft on a comet. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news