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

 

NZ dollar range-bound as global growth jitters increase


By Rebecca Howard

Aug. 19 (BusinessDesk) - The New Zealand dollar is sticking to a tight range as global growth concerns continue to weigh on sentiment.

The kiwi was trading at 64.31 US cents at 8am in Wellington from 64.27 cents in New York on Friday. The trade-weighted index was at 71.54 from 71.49.

US data was disappointing Friday, with housing starts down 4 percent in July and the preliminary August release of the University of Michigan consumer sentiment down 6.3 points to 92.1.

However, sentiment may be helped after US President Donald Trump’s economic advisor Larry Kudlow talked down fears of an economic slowdown Sunday. “I don’t see a recession at all,” he said in an interview with Fox News.

Kudlow also said trade deputies from China and the US would speak within 10 days and “if those deputies meetings pan out...we are planning to have China come to the USA” to advance negotiations, according to Reuters.

Meanwhile, headlines that the German government is ready to deliver fiscal stimulus by boosting deficit spending should a recession hit saw the bund selloff on Friday, and added to fears that economies globally are slowing.

ANZ senior economic Miles Workman said that given the German economy already contracted in the second quarter and forward looking indicators are soft “it’s no wonder recession fears are elevated.”

He noted that New Zealand has plenty of fiscal headroom should the government choose to use it. “With a few recession warnings now being triggered across the globe, now seems like a good time to start planning on how best to deliver,” he said.

Looking ahead, markets will be watching for today’s BNZ-BusinessNZ performance of services index followed by minutes from the US Federal Reserve Wednesday in the US.

The New Zealand dollar was trading at 94.64 Australian cents from 94.78, at 52.93 British pence from 52.91, at 58.00 euro cents from 57.94, at 68.48 yen from 68.39 and at 4.5297 Chinese yuan from 4.5276.

(BusinessDesk)

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Marsden Pipeline Rupture: Report Calls For Supply Improvements, Backs Digger Blame

The report makes several recommendations on how the sector can better prevent, prepare for, respond to, and recover from an incident. In particular, we consider it essential that government and industry work together to put in place and regularly practise sector-wide response plans, to improve the response to any future incident… More>>

ALSO:

Oil Scare: Trump Authorises Use Of Emergency Crude Stockpile

The New Zealand dollar fell against the US dollar after President Donald Trump authorised the use of the country's emergency crude stockpile after the weekend attack on Saudi Arabia’s major oil facilities. More>>

ALSO:

Pre-Post-Brexit Deal Talks: UK Trade Minister Visits Wellington

New Zealand should get a better deal for exports of sheepmeat, beef and dairy products into the United Kingdom after Brexit, the British Minister of State for Trade, Liz Truss, said in Wellington today. More>>

ALSO:

Not-Very Well: Tamarind Halts Tui Drilling; OMV Assesses Options

Tamarind Resources has halted drilling at its Tui oil field off the Taranaki coast after the first of the three planned wells came up dry. Managing director Ian Angell says that despite the “unexpected” result from the first well, the firm believes the other two prospects are worth pursuing. More>>

ALSO:

Seeking 'Clarity': Crown To Appeal Southern Response Decision, Offers Costs

“It is our intention that the clarity that will come from the outcome of these proceedings will enable the Crown to work with Southern Response to provide a soundly based proactive solution to those people that are affected.” More>>