News | Business
2 Aug 2014 10:30
NZCity News
NZCity CalculatorReturn to NZCity

  • Start Page
  • Personalise
  • Sport
  • Weather
  • Videos
  • Ski Report
  • Finance
  • Shopping
  • Horoscopes
  • Lotto Results
  • Photo Gallery
  • Site Gallery
  • TVNow
  • Dating
  • Auctions
  • SearchNZ
  • NZSearch
  • RugbyLeague
  • Make Home
  • About NZCity
  • Contact NZCity
  • Your Privacy
  • Advertising
  • Login
  • Join for Free

  •   Home > News > Business

    NZ dollar falls on strong US data

    Stronger data out of the US helps the greenback gain against the NZ dollar as a winding down of the stimulus programme next month finds favour.

    The New Zealand dollar weakened as stronger data out of the US reassured investors that the Federal Reserve will probably start winding back its stimulus programme next month.

    The kiwi fell to 77.73 US cents at 8am in Wellington from 78.32 cents at the 5pm market close on Thursday. The trade-weighted index slipped to 73.71 from 74.01.

    The US dollar index, which measures the greenback against a basket of currencies, gained after data showed the US economy accelerated in the second quarter and the number of Americans filing new claims for jobless benefits fell last week.

    The strength in the world's largest economy cemented expectations the Fed will soon start easing back its bond-buying program.

    "The kiwi is a tad weaker this morning on the back of positive US data, stronger GDP figure and a drop in the weekly jobless claims which shows that the US labour market is improving," said Peter Cavanaugh, client advisor at Bancorp Treasury. "Those two bits of data have given markets a little bit more confidence that the Fed will start its tapering at its September 18 meeting."

    US gross domestic product increased at a 2.5 per cent annualised pace in the second quarter, up from an initial estimate of 1.7 per cent, according to Commerce Department data. It exceeded the rate predicted by economists.

    Separately, the number of Americans filing new claims for unemployment benefits fell 6,000 to 331,000 last week, underpinning recent signs of a cautious recovery in the labour market.

    In New Zealand, there are reports on July building permits and private sector credit.

    The New Zealand dollar weakened to 87.00 Australian cents at 8am in Wellington from 87.27 cents, and it slid to 76.37 yen from 76.57 yen ahead of reports data on national and Tokyo inflation and industrial production. It edged down to 58.70 euro cents from 58.80 cents and fell to 50.11 British pence from 50.43 pence.


    © 2014 NZN, NZCity

     Other Business News
     02 Aug: Part of Chch assets company may be sold
     01 Aug: Chch council mopping up port shares
     01 Aug: NZ dollar heads for 0.8% weekly decline
     01 Aug: NZ shares join global sell-off
     01 Aug: Oji cleared to buy Carter Holt businesses
     01 Aug: Xero's increased spending 'no surprise'
     01 Aug: Gentrack misses targets, shares plunge
     Top Stories

    Black Ferns power to opening win More...

    Part of Chch assets company may be sold More...

     Today's News

    Paddon improves at Rally Finland 10:26

    Jada Pinkett Smith says Will Smith is much more than just her husband 10:22

    Kelly Rowland has confirmed she is expecting a baby boy 9:52

    Living & Travel:
    Webb calls it a day 9:36

    Lana Del Rey claims her ex-boyfriend Barrie-James O'Neill is unwell 9:22

    Black Ferns power to opening win 9:06

    Ryan Seacrest's friends are allegedly worried his girlfriend might be a gold digger 8:52

    Doyle earns Phoenix contract 8:26

    Brad Pitt and Angelina Jolie exchanged romantic love letters when they were forced to be apart last year 8:22

    Biggest doping controversies of the Games 8:16

     News Search

    Power Search

    Click for info on advertising with WebAds
    © 2014 New Zealand City Ltd