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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Trade: NZ Trade Deficit Widens To A Record In September

Oct. 27 (BusinessDesk) - New Zealand's monthly trade deficit widened to a record in September as meat exports dropped to their lowest level in more than three years. More>>


Animal Welfare: Cruel Practices Condemned By DairyNZ Chief

DairyNZ chief executive Tim Mackle says cruel and illegal practices are not in any way condoned or accepted by the industry as part of dairy farming.

Tim says the video released today by Farmwatch shows some footage of transport companies and their workers, as well as some unacceptable behaviour by farmers of dragging calves. More>>


Postnatal Depression: 'The Thief That Steals Motherhood' - Alison McCulloch

Post-natal depression is a sly and cruel illness, described by one expert as ‘the thief that steals motherhood’, it creeps up on its victims, hiding behind the stress and exhaustion of being a new parent, catching many women unaware and unprepared. More>>


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>>


International 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>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news