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.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Export Values Down: NZ Posts Biggest Annual Trade Deficit In 7 Years

New Zealand has recorded its biggest annual trade deficit since April 2009, reflecting weaker prices of agricultural commodities such as dairy products, beef and lamb, and increased imports of vehicles and machinery. More>>

ALSO:

Currency Events: NZ's New $5 Note Wins International Banknote Award

New Zealand’s new Brighter Money $5 note has been named Banknote of the Year in a prestigious international competition. The $5 note was awarded the IBNS Banknote of the Year title at the International Bank Note Society’s annual meeting. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news