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

 


NZ dollar drops as greenback buoyed by stronger data

NZ dollar drops as greenback buoyed by stronger housing, consumer confidence reports

By Tina Morrison

June 25 (BusinessDesk) - The New Zealand dollar weakened as the US dollar was buoyed by stronger-than-expected US housing and consumer confidence data.

The kiwi slipped to 86.82 US cents at 8am in Wellington, from 87.19 cents at 5pm yesterday. The trade-weighted index dropped to 80.82 from 81.08 yesterday.

Investor optimism increased about a recovery in the world's largest economy after a report showed new home sales in the US surged 18.6 percent in May, the largest monthly gain since January 1992 and ahead of expectations for a 1.4 percent rise. A separate report showed US consumer confidence rose to 85.2 in June, ahead of expectations of 83.5 and up from 82.2 in May.

"The New Zealand dollar lost ground amid broader US dollar strength overnight," Bank of New Zealand currency strategist Raiko Shareef said in a note. "The improvement in US data, accompanied by an increasing debate on whether the Fed is being complacent on inflation risks, is perhaps taking some shine off high-yielding currencies such as the Australian dollar and New Zealand dollar."

No data is scheduled for release in New Zealand today, suggesting the kiwi will trade between 86.80 US cents and 87.30 cents, Shareef said.

Tonight, traders will be eyeing US data on durable goods orders and first quarter GDP, which is expected to be revised lower.

The New Zealand dollar advanced to 92.60 Australian cents from 92.50 cents yesterday. Reserve Bank of Australia deputy governor Philip Lowe is speaking as part of a panel in Melbourne today on global challenges for the G20 group of finance ministers and central bankers from 20 major economies.

The kiwi weakened to 63.81 euro cents from 64.14 cents even after the IFP German business confidence report fell to its lowest level this year.

The local currency slipped to 51.11 British pence from 51.22 pence. Bank of England governor Mark Carney and other senior bank officials told the UK parliament's treasury select committee that the UK economy had spare capacity that needed to be used up before interest rates rose.

The New Zealand dollar edged lower to 88.47 yen from 88.88 yen yesterday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Auckland Outage: Power Mostly Restored Overnight

Vector wishes to advise that all but 324 customers have been restored overnight. These customers are spread throughout the network in small pockets. The main St Johns feeder was restored around midnight allowing most of the customers in all affected areas to have power this morning. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
More RSS  RSS
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news