NZ dollar gains on greenback weakness after IBM disappoints 21 Oct 2014
Related articles
- NZ consumers grow more upbeat, may resume spending Business
- Knowles quits as CEO of KiwiBank Business
- NZ migration bolstered by British invasion Migration
- Sludge Report #192: The Naked Budget Columns
- Budget 2010 – Building the Recovery News
- NZ manufacturing activity reaches highest since 04 Business
- NZ dollar hits 22-month high vs euro Business
- Unemployment rate falls from 7.1 to 6 percent Recruitment
- OceanaGold finds new gold deposits at Fraser mine Business
- Transpower gets go-ahead for $170m SI upgrade Business
NZ dollar gains on greenback weakness after IBM disappoints
By Tina Morrison
Oct. 21 (BusinessDesk) - The New Zealand dollar gained as the greenback declined on concern a nascent economic recovery in the US may be derailed should the Federal Reserve tighten policy too aggressively, after IBM earnings disappointed investors.
The kiwi rose to 79.73 US cents at 8am in Wellington, from 79.48 cents at 5pm yesterday. The trade-weighted index advanced to 77.22 from 77.16 yesterday.
The US dollar index, which measures the greenback against a basket of currencies, declined overnight after IBM dropped its previous pledge for 2015 growth, ditched its five-year growth plan and said it would offload its unprofitable chip unit after its quarterly earnings fell. Investors are concerned about the flow on affects to the US economy from the Fed's plan to end its quantitative easing stimulus this month and the outlook for rising US interest rates next year.
"We had some pretty poor results from IBM last night which the markets are talking about," said ANZ Bank New Zealand senior foreign exchange strategist Sam Tuck. "It's been cited by markets as a reason why the Fed should be patient because things like this could come out of left field. It's been cited in evidence that things can change rapidly and that means the Fed should be way more cautious, so the US dollar is a little bit under pressure today."
Tuck says the kiwi has support at 79.10 US cents and could pop above 80 cents today, although the longer term trend is for a decline in the kiwi as the US economy recovers.
New Zealand migration data for September scheduled for release at 10:45am is likely to show continued strength, he said. Credit card data for September will be published at 3pm.
Chinese data is the main focus for currency markets today, with a report this afternoon expected to show third quarter gross domestic product slowed to an annual rate of 7.2 percent from 7.5 percent the previous quarter, lagging the country's 2014 target of 7.5 percent. China is New Zealand's largest trading partner.
"Everybody suggests China was growing a little bit too fast, so slowing is healthy but slowing in a controlled manner without having an accident is a good thing," said the ANZ's Tuck. "A slowing China is still good for New Zealand trade. as long as they manage to slow their growth rate in a nice sustainable fashion without too many unintended consequences that's healthy for long term prospects."
September data on Chinese fixed asset investment, retail sales and industrial production is also released today.
The New Zealand dollar advanced to 90.68 Australian cents from 90.57 cents. The Reserve Bank of Australia releases the minutes from its last meeting today, while deputy governor Philip Lowe speaks to a conference in Sydney on 'investing in a low interest rate world'.
The kiwi was little changed at 62.24 euro cents from 62.28 cents yesterday and at 49.30 British pence from 49.34 pence. The local currency slipped to 85.19 yen from 85.33 yen yesterday.
(BusinessDesk)
News
Hilary Timmins' Award-Winning UK Documentary Series To Inspire NZ Students
29 Jun 2020 Education
Dream Catchers, produced and directed by Hilary Timmins, celebrates the success stories of more than thirty inspirational New... more
New Zealand reaffirms support for Flight MH17 judicial process
7 Mar 2020 News
Ahead of the start of the criminal trial in the Netherlands on 9 March, Foreign Minister Winston Peters has reaffirmed the need to... more
Business
NZ Government's Economic package to fight COVID-19
17 Mar 2020 Business News
The Coalition Government has launched the most significant peace-time economic plan in modern New Zealand history to cushion the... more
NZ Government announces aviation relief package
19 Mar 2020 Business News
Transport Minister Phil Twyford today outlined the first tranche of the $600 million aviation sector relief package announced earlier... more
Living
Diversity was Key at New Zealand Trade Tasting in London
6 Jun 2022 Food & Wine
New Zealand Winegrowers Annual Trade Tasting was recently held in London, on Wednesday 4 May, in Lindley Hall.
It was the first... more
Kiwi author stuns Behind the Butterfly Gate
12 Jan 2022 Arts
Hidden behind the Butterfly Gate is where the secret has been kept for 76 years...
New Zealand writer Merryn Corcoran’s... more
Property
Fairer rules for tenants and landlords
17 Nov 2019 Property
17 NOVEMBER 2019
The Government has delivered on its promise to the over one million New Zealanders who now rent to make it fairer... more
New Zealand Government will not implement a Capital Gains Tax
17 Apr 2019 Property
The Coalition Government will not proceed with the Tax Working Group’s recommendation for a capital gains tax, Jacinda Ardern... more
Migration
Boosting border security with electronic travel authority – now over 500,000 issued
19 Nov 2019 Migration
19 NOVEMBER 2019
We’ve improved border security with the NZeTA, New Zealand Electronic Travel Authority, which helps us to... more
Christchurch reinstated as refugee settlement location
18 Aug 2018 Migration
18 AUGUST 2018
HON IAIN LEES-GALLOWAY
The announcement that Christchurch can once again be a settlement location for refugees... more
Travel
Gallipoli Anzac Day services cancelled
19 Mar 2020 Travel & Tourism
The New Zealand and Australian Governments have announced this year’s joint Anzac Day services at Gallipoli will be cancelled... more
New Zealanders advised not to travel overseas
19 Mar 2020 Travel & Tourism
New Zealanders advised not to travel overseas
more
Sport
The Skipper's Diary: Sir Richard Hadlee honouring his father and NZ's Forty-Niners
27 Oct 2019 Cricket
NZNewsUK London Editor Charlotte Everett spoke to Sir Richard Hadlee about why he’s chosen to publish his father’s... more
PREVIEW: All Blacks v England semi-final
26 Oct 2019 Rugby
The two most convincing quarterfinals winners are set to square off in a semifinal showdown for the ages when the All Blacks meet old... more
Columns
Gordon Campbell on the Gareth Morgan crusade
11 Nov 2016 Opinion
Gordon Campbell on the Gareth Morgan crusade
First published on Werewolf
The ghastly likes of Marine Le Pen in France and Geert ... more
Gordon Campbell on the US election outcome
10 Nov 2016 Opinion
Column - Gordon Campbell
Gordon Campbell on the US election outcome
Well um.. on the bright side, there (probably)... more
Kiwi Success
Congratulations to Loder Cup winner
26 Sep 2018 People
25 SEPTEMBER 2018
The Loder Cup, one of New Zealand’s oldest conservation awards, has been awarded to Robert McGowan for 2018... more
Appointments to New Zealand National Commission for UNESCO
16 Aug 2018 Appointments
16 AUGUST 2018Appointments to New Zealand National Commission for UNESCO
HON JENNY SALESA
Associate Education Minister Jenny Salesa is... more
Recruitment
Historic pay equity settlement for education support workers
14 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more
Historic pay equity settlement for education support workers
22 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more