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

 

Media: Fairfax Moves To Create Modern Newsroom

Fairfax Media New Zealand continues its newsroom transformation this week, with a proposal to further organise its editorial operations into focused, local teams and specialist national topic areas. More>>

ALSO:

Dairy: Fonterra Forecast For 2015/16 Season

Fonterra Co-operative Group Limited has today reduced its forecast Farmgate Milk Price for the 2014/15 season to $4.40 per kgMS. Along with its previously announced forecast dividend range of 20-30 cents per share, the change amounts to a forecast ... More>>

ALSO:

BusinessDesk: SkyCity Lifts Minimum Convention Centre Investment To $430M

SkyCity Entertainment Group, the casino operator, has lifted the minimum it will invest in the Auckland International Convention Centre to $430 million and said total costs including land may be $450 million to $470 million. More>>

Statistics: Drop In Dairy Prices Leads Fall In Exports

Total goods exports fell $240 million (5.5 percent) to $4.2 billion in April 2015 compared with April 2014, Statistics New Zealand said today. More>>

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>


BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>

BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news