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

 

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Warming: Warming Signs From State Of Climate Report

Climate data from air, land, sea and ice in 2013 'reflect trends of a warming planet' -- says the latest State of the Climate report, launched by U.S. and New Zealand scientists. More>>

ALSO:

Scoop Business: Embrace Falling Home Affordability, Says NZIER

Despair over the inability to afford a house is misplaced and should be embraced as an opportunity to invest in more wealth-creating activity, says the principal economist at the New Zealand Institute of Economic Research, Shamubeel Eaqub. More>>

Productivity Commission: NZ Regulation Not Keeping Pace

New Zealand regulators often have to work with out-of-date legislation, quality checks are under strain, and regulatory workers need better training and development. More>>

ALSO:

Callaghan Innovation: Investment To Help Deepen Innovation Reporting

Callaghan Innovation, the government’s high tech HQ for Kiwi business, is to help deepen New Zealand media coverage of the commercialisation of innovation through an arms-length partnership with independent business news service BusinessDesk. More>>

ALSO:

Tax Credits, Grants: Greens $1Bn R&D Plan

In the Party’s headline economic announcement, the Greens have launched their plan to build a smarter, more innovative economy which has as its centrepiece an additional $1 billion of government investment in research and development (R&D) above current spend, including tax breaks for business. More>>

ALSO:

Inflation: CPI Increases 0.3 Percent In June Quarter

The consumers price index (CPI) rose 0.3 percent in the June 2014 quarter, Statistics New Zealand said today. This follows rises of 0.3 percent the March quarter and 0.1 percent in the December 2013 quarter. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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