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

 


NZ dollar slips on GDP, holds above 87 US cents

NZ dollar slips on GDP, remains above 87 US cents

By Tina Morrison

June 20 (BusinessDesk) - The New Zealand dollar slipped overnight as some traders were disappointed yesterday's gross domestic product report failed to beat expectations, however it remains elevated above 87 US cents

The kiwi edged lower to 87.07 US cents at 8am in Wellington from 87.13 cents at 5pm yesterday. The trade-weighted index weakened to 81.02 from 81.09 yesterday.

The kiwi softened following the GDP report yesterday, following a spike higher above 87 US cents. Government figures showed the economy grew at a 1 percent pace in the first three months of the year, from an upwardly revised 1 percent gain in the fourth quarter, marking three quarters of growth of at least 1 percent.

While annual growth of 3.3 percent exceeded expectations of 3.1 percent, the quarterly growth was a touch below the Reserve Bank's 1.1 percent expectation, the 1.2 percent forecast in a Reuters poll of economists and the 1.4 percent pace expected by some in the market.

"Some of the wind was taken out of the New Zealand dollar's sails by an as-expected GDP outturn," Bank of New Zealand currency strategist Raiko Shareef said in a note. "The result was close enough to published forecasts, but in the days before, analysts had been talking about upside risk, warning that the outturn could be in the region of 1.3 percent to 1.4 percent. The market looked to be positioned for that result, and was disappointed."

The kiwi is likely to hold at 87 US cents on the downside and face resistance at its 2014 high of 87.80 cents, Shareef said.

In other news, Federal Reserve Chair Janet Yellen said that the New Zealand economy "seems to be doing extremely well". Yellen was commenting to reporters following a meeting with Prime Minister John Key at the Federal Reserve headquarters in Washington.

In New Zealand today, traders will be eyeing the ANZ-Roy Morgan Consumer Confidence report scheduled for release at 1pm.

The kiwi weakened to 51.10 British pence from 51.28 pence yesterday, dropped to 64 euro cents from 64.10 cents, was little changed at 92.65 Australian cents from 92.64 cents, and slid to 88.77 yen from 88.81 yen.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Half Full: Fonterra Raises Forecast Milk Price

Fonterra Co-operative Group Limited today increased its 2016/17 forecast Farmgate Milk Price by 50 cents to $4.75 per kgMS. When combined with the forecast earnings per share range for the 2017 financial year of 50 to 60 cents, the total payout available to farmers in the current season is forecast to be $5.25 to $5.35 before retentions. More>>

ALSO:

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Reserve Bank: Labour Calls For Monetary Policy To Expand Goals

Labour's comments follow a speech today by RBNZ governor Graeme Wheeler in which Wheeler sought to answer critics who variously say he should stop lowering interest rates, lower them faster, or that inflation-targeting should no longer be the primary goal of the central bank's activities. More>>

ALSO:

BSA Extension And Sunday Morning Ads: Digital Convergence Bill Captures Online Content

Broadcasting Minister Amy Adams has today announced the Government’s plans to update the Broadcasting Act to better reflect today’s converged market... The Government considered four areas as part of its review into content regulation: classification requirements, advertising restrictions, election programming and contestable funding. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news