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

 

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news