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


NZ dollar gains after retail sales beats expectations

NZ dollar gains after retail sales beats expectations

By Paul McBeth

Aug. 14 (BusinessDesk) - The New Zealand dollar gained after government figures showed better-than-expected consumer spending in the second quarter, stoking optimism about the strength of the local economy.

The kiwi rose as high as 84.88 US cents, trading at 84.70 cents at 5pm in Wellington from 84.56 cents at 8am and 84.26 cents yesterday. The trade-weighted index advanced to 79.51 from 79.06.

New Zealand's volume of retail sales rose a seasonally adjusted 1.2 percent in the three months ended June 30, beating expectations for 1 percent growth, and from an upwardly revised first-quarter. The increased consumer spending comes as households become more optimistic about the expanding economy in an improving labour market, and as the Reserve Bank takes a breather in hiking interest rates.

"Retail sales came in a bit stronger than expected in both headline and core numbers, and there were upward revisions in the prior quarter," said Michael Johnston, a senior dealer at HiFX in Auckland. "That gave the kiwi a bit of a short in the arm with a spike up, but it couldn't get on with the job - the market is not comfortable taking the kiwi aggressively higher."

With little local data over the next over the coming month, HiFX's Johnston said the local currency will continue to grind lower as the US economic recovery gathers pace, reducing the need for the Federal Reserve to run a near zero-interest rate policy.

Separately, a survey showed New Zealand's manufacturing activity expanded for a 22nd month, albeit at a slower pace in July.

The local currency rose to 91.05 Australian cents at 5pm in Wellington from 90.77 cents yesterday, and gained to 86.87 yen from 86.18 yen. It increased to 63.36 euro cents from 63.05 cents, and advanced to 50.77 British pence from 50.13 pence yesterday.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Shocking Dairy Footage: MPI Failing Our Animals And Damaging Our Reputation

Greens “Nathan Guy needs to urgently look into how his ministry is enforcing animal welfare standards, how these appalling incidents happened under its watch and what it’s going to do prevent similar incidents happening again in the future." More>>


Land & Water Forum: Fourth Report On Water Management

The Land and Water Forum (LWF) today published its fourth report, outlining 60 new consensus recommendations for how New Zealand should improve its management of fresh water and calling on the Government to urgently adopt all of its recommendations from earlier reports. More>>



Welcome Home: Record High Migration Stokes 41-Year High Population Growth

New Zealand annual net migration hit a new high in October as more people arrived from than departed for Australia for the first time in more than 20 years. More>>


Citizens' Advice Bureau: Report Shows Desperate Housing Situation Throughout NZ

CAB's in-depth analysis of over 2000 client enquiries about emergency accommodation shows vulnerable families, pregnant women and children living in cars and garages, even after seeking assistance from the Ministry of Social Development and Housing New Zealand. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news