NZ dollar falls as business confidence sinks to 6-year low 31 Aug 2015
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 falls as business confidence sinks to 6-year low, US jobs data eyed
By Jonathan Underhill
Aug. 31 (BusinessDesk) - The New Zealand dollar fell after figures showed business confidence sank to a six-year low this month, stoking speculation the Reserve Bank will be prepared to make deeper cuts to interest rates to revive an economy showing little sign of accelerating inflation.
The kiwi fell to 64.21 US cents as at 5pm, in Wellington, from 64.53 cents at the New York close on Friday. The trade-weighted index fell to 69.49 from 69.98.
The ANZ Business Outlook showed a net 29 percent of businesses surveyed are pessimistic about the general economy, while the measure of firms' own activity expectations fell 7 points to +12, also a six-year low. For agriculture, a net 28 percent saw worse times ahead, a record low. Inflation expectations were unchanged at about 1.7 percent, below the 2 percent mid-point of the central bank's target band.
"The business confidence survey was indeed pretty horrible and the market reacted as it should," said Imre Speizer, senior market strategist at Westpac Banking Corp. "It starts to speak to our view that we will get lower than a 2.5 percent official cash rate. Business confidence is falling away pretty fast."
The OCR is currently at 3 percent and the Reserve Bank's next opportunity to review the rate and its economic forecasts is with the Sept. 10 monetary policy statement. It has two further opportunities, officially, this year, at its OCR review on Oct. 29 and the next full MPS on Dec. 10.
The kiwi had already weakened against a broadly stronger greenback after US Federal Reserve vice chair Stanley Fischer told a central bankers' conference at Jackson Hole, Wyoming, at the weekend that the Fed remained on track for lift-off this year and that the “door remains open” to a September hike.
US payrolls data for August, due out on Friday in the US, are also expected to be negative for the kiwi, with the world's biggest economy forecast to have added 235,000 jobs this month, up from 215,000 in the previous month. Chinese manufacturing figures for manufacturing, due out tomorrow, will also be closely watched, Speizer said.
The kiwi may trade between 62.50 US cents and 67.50 cents this week, according to a BusinessDesk survey of 10 currency advisers today. Six expect the kiwi to decline, two say it may gain and two bet it will remain largely unchanged. Stronger US jobs data will increase the chance of a Federal Reserve interest rate hike next month, they said.
The New Zealand dollar fell to 89.78 Australian cents after the confidence survey from 90.20 cents on Friday. The kiwi fell to 57.05 euro cents from 57.50 cents on Friday and dropped to 77.76 yen from 78.33 yen. It fell to 4.0961 yuan from 4.1372 yuan and sank to 41.62 British pence from 41.93 pence.
The two-year swap rate rose about 3 basis points to 2.76 percent and the 10-year swaps rose 2 basis points to 2.95 percent.
(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