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

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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