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


NZ dollar falls before NZ First's announcement

NZ dollar falls before NZ First's announcement on new government

By Jonathan Underhill

Oct. 19 (BusinessDesk) - The New Zealand dollar fell ahead of an announcement on the formation of the new government, flagged for today, as the market prepares to assess the policy concessions wrung out of the deal by the NZ First Party.

The kiwi dollar slipped to 71.44 US cents as at 8am in Wellington from 71.59 cents late yesterday. The trade-weighted index fell to 75.28 from 75.37.

Traders said the New Zealand dollar may be volatile, short term, in the wake of the announcement. A deal with the Labour Party may see the kiwi drop while one with National could see an initial gain. NZ First said yesterday that it intended to reveal the results of its negotiations with Labour and National today, and that leader Winston Peters had given a heads up to Bill English and Jacinda Adern.

"Markets will no doubt be on tenterhooks today until we get some political clarity," Philip Borkin, senior economist at ANZ Bank New Zealand, said in a note. "The initial reaction could be large, but whether it is sustained will depend on the nature of policy concessions and the perceived stability of any arrangement."

Borkin said beyond politics he expects the kiwi dollar to weaken because "it is clear that some of the kiwi’s previous supports have started to fade."

That includes ANZ and Bank of New Zealand cutting their milk payout forecasts in the wake of this week's dairy auction.

Also out today is Australian employment data for September and third-quarter business confidence, and in China, third-quarter gross domestic product and retail sales and industrial production for September.

The kiwi fell to 54.13 British pence from 54.29 pence yesterday and declined to 91.03 Australian cents from 91.16 cents. It traded at 4.7336 yuan from 4.7317 yuan and rose to 80.63 yen from 80.34 yen. It fell to 60.63 euro cents from 60.82 cents.



© Scoop Media

Business Headlines | Sci-Tech Headlines


Bell Gully: Uncertainty Ahead With New Unconscionable Conduct Legislation

new prohibition against ‘unconscionable conduct’ in trade is one of a number of changes to the Fair Trading Act 1986 that come into force from 16 August 2022. The new prohibition may have wide-ranging implications for many businesses... More>>

Statistics: Food Prices Increase 7.4 Percent Annually
Food prices were 7.4 percent higher in July 2022 compared with July 2021, Stats NZ said today... More>>

REINZ: Market Activity And Prices Continue To Ease, First Home Buyers Start To Return To The Market

New Zealand’s winter property market continues its recent trend, slowing from the pace of sales and price rises of last year — properties stay on the market longer and median prices dip... More>>

Kiwi Group Holdings: Fisher Funds Acquires Kiwi Wealth Business

Kiwi Group Holdings Limited (KGHL) today announced the sale of Kiwi Wealth to Fisher Funds for NZ$310 million... More>>

Retail NZ: Welcomes Return Of Cruise Ships

“Cruise visitors were big spenders in retail prior to COVID-19, and retailers in Auckland will be celebrating the arrival of P&O’s Pacific Explorer this morning... More>>

ASB: Full Year Results: Building Resilience Today And For Our Future

In its 175th year, ASB has reported a cash net profit after tax of $1,418 million for the 12 months to 30 June 2022, an increase of $122 million or 9% on the prior year... More>>