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

 

NZ dollar falls as economy seen settling to more modest pace

NZ dollar falls as economy seen settling to more modest pace, greenback rises

By Jonathan Underhill

Aug. 21 (BusinessDesk) - The New Zealand dollar declined, and could fall another 1.1 percent before finding firm support, on signs domestic economic growth is settling to a more moderate pace at a time traders are increasing bets on a revival in the greenback.

The kiwi fell to 83.63 US cents at 5pm in Wellington, from 83.88 cents at 5pm yesterday. The trade-weighted index was at 78.94 from 78.93 yesterday.

Among factors weighing on the New Zealand dollar, the ANZ-Roy Morgan Consumer Confidence Index fell 7 points to a 10-month low this month, while in the nation's second-biggest market of China, the preliminary Purchasing Managers’ Index from HSBC Holdings and Markit Economics, a measure of manufacturing, fell to a lower-than-expected 50.3. That came after minutes of the last US Federal Reserve Open Market Committee meeting indicated more willingness to end stimulus measures and hike interest rates. The US dollar index is at its highest since September 2013.

"The New Zealand dollar has been at exceptional levels thanks to the outperformance of the New Zealand economy," said Sam Tuck, senior FX strategist at ANZ Bank New Zealand. "What we think now is these domestic factors have been removed, even though the economy is ticking along quite nicely. That leaves the kiwi to be driven by external factors."

Tuck said the next support levels for the kiwi are around 82.60 US cents to 82.80 cents.

Minutes from the Federal Reserve Open Market Committee showed policymakers were less concerned about low inflation and more optimistic about a pickup in the labour market, suggesting they may hasten the removal of monetary policy stimulus. Fed chair Janet Yellen has the opportunity to expand on the FOMC's views when she addresses a retreat for central bank governors at Jackson Hole, in what would be Saturday New Zealand time.

The New Zealand dollar rose to 90.32 Australian cents from 90.28 cents yesterday, and traded at 50.47 British pence from 50.51 pence. It edged up to 63.13 euro cents from 63.03 cents and gained to 86.85 yen from 86.50 yen.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Superu Report: Land Regulation Drives Auckland House Prices

Land use regulation is responsible for up to 56 per cent of the cost of an average house in Auckland according to a new research report quantifying the impact of land use regulations, Finance Minister Steven Joyce says. More>>

ALSO:

Fletcher Whittled: Fletcher Dumps Adamson In Face Of Dissatisfaction

Fletcher Building has taken the unusual step of dumping its chief executive, Mark Adamson, as the company slashed its full-year earnings guidance and flagged an impairment against Australian assets. More>>

ALSO:

No More Dog Docking: New Animal Welfare Regulations Progressed

“These 46 regulations include stock transport, farm husbandry, companion and working animals, pigs, layer hens and the way animals are accounted for in research, testing and teaching.” More>>

ALSO:

Employment: Most Kiwifruit Contractors Breaking Law

A Labour Inspectorate operation targeting the kiwifruit industry in Bay of Plenty has found the majority of labour hire contractors are breaching their obligations as employers. More>>

ALSO:

'Work Experience': Welfare Group Opposes The Warehouse Workfare

“This programme is about exploiting unemployed youth, not teaching them skills. The government are subsidising the Warehouse in the name of reducing benefit dependency,” says Vanessa Cole, spokesperson for Auckland Action Against Poverty. More>>

ALSO:

Internet Taxes: Labour To Target $600M In Unpaid Taxes From Multinationals

The Labour Party would target multinationals operating in New Zealand to ensure they don't avoid paying tax if it wins power and is targeting $600 million over three years through a "diverted profits tax," says leader Andrew Little. More>>

ALSO: