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

 


NZ dollar holds near 7-week low as US GDP, FOMC loom

NZ dollar holds near 7-week low as US GDP, FOMC loom

By Jonathan Underhill

July 30 (BusinessDesk) - The New Zealand dollar held near a seven-week low as traders await figures expected to show US economic growth is back on track and the results of the Federal Reserve's monetary policy review, which may hint at a better outlook.

The kiwi traded at 85.11 US cents at 5pm in Wellington from 84.96 cents at 8am and from 85.15 cents late yesterday. The trade-weighted index was little changed at 79.54.

The US economy grew at an annualised 3 percent pace in the second quarter, according to a Bloomberg survey. That would reverse the 2.9 percent contraction in the first quarter, to leave gross domestic product relatively flat in the first half of the year. The Dollar Index, which measures the greenback against a basket of major currencies. is at its highest since late January. The Federal Open Market Committee's statement may provide some clues to when the central bank will lift interest rates from near zero, which requires proof the world's biggest economy is improving, including the labour market.

"We're seeing a move in the markets where the US dollar is slowly pushed to the forefront," said Stuart Ive, senior dealer at OMF. "The market is hoping the statement from the Fed is going to be a little bit more hawkish than it has been, particularly around employment. It's quite clear the US, although fairly uneven, is spluttering towards better numbers, better growth."

Ive said the kiwi dollar has probably peaked for now and is likely to pull back "to the low 80s."

The kiwi has tumbled from more than 88 US cents in the face of tepid inflation figures, weaker prices for the nation's key exports of dairy and logs, and a central bank signalling a pause in its tightening cycle. Fonterra Cooperative Group yesterday confirmed the impact of falling global dairy prices, cutting its forecast farmgate milk payout for 2015 to $6 a kilogram of milk solids from a previous forecast of $7.

The kiwi traded at 90.66 Australian cents from 90.62 cents yesterday, and was at 63.47 euro cents from 63.40 cents. It traded at 50.22 British pence from 50.17 pence and was at 86.87 yen from 86.84 yen.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Farming: Alliance Plans To Start Docking Farmer Payments

Alliance Group, New Zealand's second-largest meat cooperative, plans to start withholding some stock payments to its farmers from next week to bolster its balance sheet and force suppliers to meet their share requirements. More>>

ALSO:

Gambling: SkyCity First Half Profit Rises 30%, Helped By High Rollers

SkyCity anticipates the Auckland business will benefit from government gaming concessions which were triggered on Nov. 11 in recognition of SkyCity’s $470 million Convention Centre development. Morrison said the concessions would allow the Auckland business to lift its activity during peak period, noting it had a record revenue week over the Christmas and New Year period. More>>

ALSO:

Money For Light: Kiwi Scientists Secure Preferential Access To Synchrotron

Science and Innovation Minister Steven Joyce today announced a three-year investment of $2.8 million in the Australian Synchrotron, the largest piece of scientific infrastructure in the Southern Hemisphere, to secure preferential access for Kiwi scientists. More>>

Telco Industry Report: Investment Hits $1.7 Bln A Year

Investment in the telecommunications sector is $1.7 billion a year, proportionately one of the highest levels in the OECD, according to a report released today on the status of the New Zealand sector. More>>

ALSO:

PGPs: New Programme Sets Sights On Strong Wool

A new collaboration between The New Zealand Merino Company (NZM) and the Ministry for Primary Industries (MPI), announced today, aims to deliver premiums for New Zealand's strong wool sector... More>>

ALSO:

Restrictions Lifted: No Further Tau Flies Found

The Ministry for Primary Industries (MPI) confirms that all restrictions on the movement of fruit and vegetables in Manurewa, Auckland, due to the Tau fly, have been lifted as of 2.26pm on Sunday 7 February. More>>

Crowdfinding: Awaroa Beach To Become Public Land If Appeal Succeeds

Conservation Minister Maggie Barry says a privately-owned beach will become part of the Abel Tasman National Park if an online crowdfunding campaign to buy it succeeds... More>>

ALSO:

Meat Workers Union: Waitangi Mondayisation Flaunted By Large Employer Of Maori

At the AFFCO Talley owned meat plant in Rangiuru, the company has resorted to bullying and threats... saying they could be disciplined and their union sued for an unlawful strike if workers exercise their rights to a paid day off tomorrow. More>>

Earlier:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news