NZ dollar climbs almost 1 US ct on hopes of Spanish bailout 7 Jun 2012
- NZ consumers grow more upbeat, may resume spending Business
- Knowles quits as CEO of KiwiBank Business
- NZ migration bolstered by British invasion Migration
- NZ manufacturing activity reaches highest since 04 Business
- NZ dollar hits 22-month high vs euro Business
- OceanaGold finds new gold deposits at Fraser mine Business
- Transpower gets go-ahead for $170m SI upgrade Business
- NZ home sales creep up in March, still subdued Property
- NZ economy expands at fastest pace in two years Business
- New Zealand food prices fall in February Business
NZ dollar climbs almost 1 US cent on hopes of Spanish bank bailout, EU stimulus
By Hannah Lynch
June 7 (BusinessDesk) - The New Zealand dollar rose almost one US cent on optimism European policymakers will act to stimulate the region’s economy and provide aid for Spanish banks while the Federal Reserve said the US continues to grow at a modest pace.
The New Zealand dollar increased to 76.98 US cents at 8am from 76.22 cents yesterday at 5pm. The trade weighted index rose to 69.99 from 69.48.
European Central Bank President Mario Draghi said policymakers were “ready to act” after the central bank left its benchmark rate at a record low 1 percent. The ECB also extended its lending to banks for up to three years, providing some hope for ailing Spanish lenders. In the US, the Federal Reserve said the world's largest economy maintained a moderate pace of growth as factory output rose and the real estate market improved.
"What has moved the kiwi is the hope in the market that there seems to some resolution in the Spanish situation," said Stuart Ive, currency strategist at HiFX. Optimism for an improvement in Europe “has had a big effect on New Zealand dollar sentiment.”
The ECB lowered its growth forecast to 1 percent in 2013 from 1.1 percent. Its forecast of a 0.1 percent economic contraction in the euro area this year was unchanged along with inflation at 2.4 percent for 2012 and 1.6 percent for 2013.
Fed policymakers will provide further insight on their views when vice chairmen Janet Yellen speaks in Boston and Chairman Ben Bernanke testifies to Congress on Thursday. The Beige Book also used language similar to its April report as the economy “continued to expand at a modest to moderate pace.”
Investors are looking for signs that a loss of momentum in US growth could warrant a third round of quantitative easing, or QE3.
The kiwi traded at 77.48 Australian cents at 8am up from 77.33 cents yesterday. That comes before New Zealand's biggest export market release its employment numbers this afternoon. The data will follow Australia's gross domestic product, which grew at more than twice the pace economists had predicted, expanding at 1.3 percent in the three months ended March 31.
"The Aussie employment numbers are wildly volatile," Ive said. "The New Zealand dollar will be dragged along with whatever happens with the Aussie data."
There is no significant data set for release in New Zealand today. The March quarter’s wholesale trade survey from Statistics New Zealand will be released tomorrow.
The New Zealand dollar was little changed on 61.25 euro cents from 60.93 cents and 49.68 British pence from 49.40 pence. The kiwi increased to 60.96 yen from 60.11 yen.
31 Dec 2016 News
31 December 2016Some of New Zealand’s most inspiring women have been recognised in the 2017 New Year’s Honours list... more
26 Dec 2016 Business News
The New Zealand economy continued to grow solidly in the September quarter, posting a higher than expected 1.1 per cent growth rate... more
23 Dec 2016 Business News
23 December 2016 Trade Minister Todd McClay today welcomed the World Trade Organization's (WTO) decision upholding New Zealand's... more
21 Nov 2016 Lifestyle
Emirates Team New Zealand EMIRATES TEAM NEW ZEALAND CLOSES IN 3rd POSITION THE LOUIS VUITTON AMERICA’S CUP WORLD SERIES
14 Nov 2016 Property
Article - BusinessDesk Monday 14 November 2016 10:28 AM NZ house prices gain 11% in October, driven by sales of higher value homes By... more
11 Nov 2016 Property
Article - BusinessDesk Thursday 10 November 2016 04:04 PM RBNZ sees pressures building in Auckland construction sector By Paul ... more
8 Dec 2016 Migration
Economic Development Minister Steven Joyce has welcomed news that New Zealand is attracting a higher level of quality international... more
1 Nov 2016 Migration
New Zealand Government Hon Paul GoldsmithMinister of Commerce and Consumer Affairs 1 November 2016 Changes to Financial Markets... more
8 Dec 2016 Travel & Tourism
Hon. Simon Bridges 8 December, 2016 Prime Minister John Key and Transport Minister Simon Bridges have turned the sod on th... more
2 Dec 2016 Travel & Tourism
Air New Zealand has paired up with singer Ronan Keating and rising Kiwi actor Julian Dennison to rejig a Christmas classic. 'Summer... more
31 Dec 2016 Cricket
29 Dec, 2016 In ShortA composed maiden ODI century from the recalled Neil Broom and an unrelenting bowling performance on a tough... more
26 Dec 2016 Rugby
World Rugby and the Japan Rugby 2019 organising committee have been looking ahead to an important year of preparation as Rugby World... more
11 Nov 2016 Opinion
Column - Gordon Campbell Gordon Campbell on the Gareth Morgan crusade First published on Werewolf more
10 Nov 2016 Opinion
Column - Gordon Campbell Gordon Campbell on the US election outcome more
8 Dec 2016 Appointments
Hon. Murray McCully 7 December, 2016 High Commissioner to India announced Foreign Minister Murray McCully today... more
8 Dec 2016 Recruitment
Hon. Paula Bennett, Hon. Michael Woodhouse, Hon. Louise Upston 24 November, 2016 The Government will update the Equa... more
2 Nov 2016 Recruitment
Article - BusinessDesk Tuesday 01 November 2016 04:42 PM Fisher Funds hunts for new head to replace founder Carmel Fisher By Paul ... more