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


Better than expected US data keeps investors upbeat

Thursday 06 October 2016 08:44 AM

NZ dollar dips as better than expected US data keeps investors upbeat on Fed rate hike

By Paul McBeth

Oct. 6 (BusinessDesk) - The New Zealand dollar dipped as another upbeat US economic report kept investors optimistic the Federal Reserve will raise interest rates before the end of the year, stoking demand for the greenback.

The kiwi declined to 71.69 US cents at 8am in Wellington from 71.87 cents yesterday. The trade-weighted index edged down to 76.42 from 76.53.

The US ISM non-manufacturing index delivered a reading of 57.1 in September, beating the 53 level economists were predicting and giving investors heart the Fed will proceed with a rate hike in November or December. That added to growing support for an increase in rates after non-voting Fed official Jeffrey Lacker told reporters earlier this week that he favoured a hike last month. US non-farm payrolls on Friday will be watched for further confirmation higher interest rates are on their way.

"The non-manufacturing ISM jumped to its highest level in nearly a year, suggesting August’s weakness was an aberration," ANZ Bank New Zealand senior economist Sharon Zollner said in a note. "As long as US rate hike expectations are creeping up, the NZD/USD looks likely to continue to grind lower."

New Zealand's currency dropped to a seven-week low yesterday after prices unexpectedly fell at the latest GlobalDairyTrade auction, raising concerns about the outlook for the country's biggest export commodity, and amid speculation the European Central Bank may scale back its quantitative easing programme, which would push interest rates higher and reduce the appeal of the kiwi. The New Zealand dollar was little changed at 63.89 euro cents from 64.05 cents yesterday.

The kiwi was little changed at 56.20 British pence from 56.22 pence yesterday, having retreated from its highest level in decades on fears UK Prime Minister Theresa May’s exit from the European Union and focus on curbing immigration would cut the country out of the single market.

The New Zealand dollar traded at 94.03 Australian cents from 94.11 cents yesterday and rose to 74.31 yen from 73.87 yen. It decreased to 4.7800 Chinese yuan from 4.7927 yuan yesterday.



© Scoop Media

Business Headlines | Sci-Tech Headlines


RNZ: Housing Boom Could Get Worse, Economist Warns

Economists are calling on the Reserve Bank to reinstate lending restrictions, warning the housing market is spiralling out of control. More>>


Westpac: Sets Out Plan To Go Cheque-Free

Westpac NZ has announced details of its plan to phase out cheques, after signalling in May that it would be supporting a move to other forms of payment. Cheques will cease to be available as a means of payment after 25 June 2021. Westpac NZ General ... More>>


NZTA: Major New Zealand Upgrade Programme Projects Go To Tender

Two major New Zealand Upgrade Programme projects are beginning tenders for construction. The New Zealand Upgrade Programme is a $6.8 billion investment to get our cities moving, to save lives and boost productivity in growth areas. The first Auckland ... More>>

Reserve Bank: RBNZ Seeks To Preserve Benefits Of Cash

The Reserve Bank – Te Pūtea Matua is taking on a new role of steward of the cash system “to preserve the benefits of cash for all who need them”, Assistant Governor Christian Hawkesby told the Royal Numismatics Society of New Zealand annual conference ... More>>


Economy: Double-Dip Recession Next Year, But Housing Rolls On

New Zealand's economy is expected to slip back into recession early next year as delayed job losses, falling consumer spending, and the absence of international tourists bites into growth. More>>


Microsoft New Zealand: Microsoft Expands “Highway To A Hundred Unicorns” Initiative To Support Startups In Asia Pacific

New Zealand, 14 October 2020 – Today Microsoft for Startups launches the Highway to a Hundred Unicorns initiative in Asia Pacific to strengthen the region’s startup ecosystem. This follows the initiative’s success in India, where 56 startups were ... More>>

Economy: NZ Small Business Recovery Continues In September

Xero, the global small business platform, today released its Small Business Insights (XSBI) for September revealing an uptick in small business jobs and year-on-year revenue growth in New Zealand. Nationwide, the average number of jobs in the small ... More>>


Courts: Businessman Eric Watson Sentenced To A Four-Month Jail Term

New Zealand businessman Eric Watson has been sentenced to a four-month jail term in the UK for contempt of court, TVNZ reports. More>>

OECD: Area Employment Rate Falls By 4.0 Percentage Points, To 64.6% In Second Quarter Of 2020

The OECD area employment rate – the share of the working-age population with jobs – fell by 4.0 percentage points, to 64.6%, in the second quarter of 2020, its lowest level since the fourth quarter of 2010. Across the OECD area, 560 million persons ... More>>

Spark: Turns On 5G In Auckland And Offers A Glimpse Into The Future Of Smart Cities

Spark turned on 5G in downtown Auckland today and has partnered with Auckland Transport (AT) to showcase some of the latest in IoT (Internet of Things) technology and demonstrate what the future could look like for Auckland’s CBD with the power of 5G. 5G is ... More>>

Stats NZ: Monthly Migration Remains Low

Since the border closed in late-March 2020, net migration has averaged about 300 a month, Stats NZ said today. In the five months from April to August 2020, overall net migration was provisionally estimated at 1,700. This was made up of a net gain ... More>>

University of Canterbury: Proglacial Lakes Are Accelerating Glacier Ice Loss

Lake Tasman, New Zealand | 2016 | Photo: Dr Jenna Sutherland Meltwater lakes that form at glacier margins cause ice to recede much further and faster compared to glaciers that terminate on land, according to a new study. But the effects of these glacial ... More>>