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

 


NZ dollar falls as Australian business confidence grows

NZ dollar falls vs. greenback as upbeat Australian firms stoke demand for A$

By Paul McBeth

Aug. 12 (BusinessDesk) – The New Zealand dollar fell against the greenback as growing confidence among Australian firms stoked demand for the Australian dollar.

The kiwi dropped to a two-month low 84.12 US cents, trading at 84.13 cents at 5pm in Wellington from 84.61 cents at 8am and 84.67 cents yesterday. It declined to 90.82 Australian cents from 91.21 cents yesterday.

National Australia Bank’s survey of business conditions rose 6 points to +8 in July, its highest level since early 2010, while confidence rose 3 points to +11. The upbeat survey fuelled demand for the Australian dollar at the kiwi’s expense, which has been favoured among investors because of its relatively high yield. Data showing rising house prices across the Tasman added to demand for the Australian dollar.

“Australia’s has a string of bad data, and some people are pricing in an RBA (Reserve Bank of Australia) rate cut – this stuff pulls them back to their senses,” said Imre Speizer, market strategist at Westpac Banking Corp in Auckland. “Those two things gave the Aussie a real boost against the US dollar and against the kiwi – as a result, the kiwi/US has fallen.”

Westpac’s Speizer said the currency has broken through a key 84.50 US cents level, and if it falls below 84 cents in the London and New York sessions it could have a much bigger decline.

Real Estate Institute of New Zealand figures today showed house sales fell in July as winter set in, and Reserve Bank-imposed curbs on low equity home lending limit sales at the bottom end of the market.

The local currency fell 62.92 euro cents from 63.17 cents yesterday ahead of a ZEW reports on German and European economic sentiment tonight.

The kiwi declined to 50.20 British pence from 50.44 pence ahead of tomorrow’s releases of July employment data and the Bank of England’s quarterly inflation report.

The New Zealand dollar dropped 86.07 yen from 86.46 yen yesterday. The trade-weighted index fell to 78.99 from 79.39 yesterday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Fruitful Endeavours: Kiwifruit Exports Reach Record Levels

In June 2016, kiwifruit exports rose $105 million (47 percent) from June 2015 to reach $331 million, Statistics New Zealand said today. Overall, goods exports rose $109 million (2.6 percent) in June 2016 (to $4.3 billion). More>>

ALSO:

Economic Update: RBNZ Says Rate Cut Seems Likely

The Reserve Bank will likely cut interest rates further as a persistently strong kiwi dollar makes it difficult for the bank to meet its inflation target, it said. The local currency fell. More>>

ALSO:

House Price Action Plan: RBNZ Signals National Lending Restrictions

The central bank wants to cap bank lending to property investors with a deposit of less than 40 percent at 5 percent and restore the 10 percent limit for owner-occupiers wanting to take out a mortgage with a deposit of less than 20 percent, according to a consultation paper released today. More>>

ALSO:

Sparks Fly: Gordon Campbell On China Steel Dumping Allegations

No doubt, officials on the China desk at MFAT have prided themselves on fashioning a niche position for New Zealand right in between the US and China – and leveraging off both of them! Well, as the Aussies would say, of MFAT: tell ‘em they’re dreaming. More>>

ALSO:

Loan Sharks: Finance Companies Found Guilty Of Breaching Fair Trading Act

Finance companies Budget Loans and Evolution Finance, run by former 1980s corporate high-flyer Allan Hawkins, have been found guilty of 106 charges of breaching the Fair Trading Act for misleading 21 borrowers while enforcing loan contracts. More>>

ALSO:

Post Panama Papers: Govt To Adopt Shewan's Foreign Trust Recommendations

The government will adopt all of the recommendations from former PwC chairman John Shewan to increase disclosure and introduce a register for foreign trusts with new legislation to be introduced next month. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news