Sharechat Logo

NZ dollar falls before GDP that may show pace of growth slowed

Thursday 22nd March 2012

Text too small?

The New Zealand dollar fell before the release of fourth-quarter gross domestic product that’s expected to show the pace of growth has slowed, while the greenback gained against most major currencies. The New Zealand dollar fell to 81.45 US cents at 8am from 81.89 cents at 5pm yesterday.

A Reuters survey of 11 economists is for GDP to have grown 0.6 percent in the fourth quarter, slowing from a pace of 0.8 percent three months earlier. The slowdown is attributed to a drop in manufacturing, offset by strong farming output and improving retail trade and construction.

“Anything over 0.6 percent we may well get a lift in the New Zealand dollar,” said Dan Bell, currency strategist at HiFX.

The data comes a day after government figures showed the current account deficit narrowed more than expected in the fourth quarter, amid record exports of dairy products and smaller dividends paid out to foreigners.

Among US data overnight, sales of previously owned houses fell 0.9 percent to an annual rate of 4.59 million, just below the 4.61 million rate expected in a Bloomberg survey. The numbers were still strong enough to provide comfort the US housing market is stabilising.

The kiwi dollar fell to 51.38 British pence from 51.85 pence after Britain's Chancellor of the Exchequer George Osborne announced he would cut the top income tax rate to 45 percent from 50 percent, while closing some loopholes for the rich.

The New Zealand dollar was little-changed on 61.71 euro cents from 61.70 cents and was little-changed on 77.96 Australian cents from 77.99 cents. The kiwi declined to 68.02 yen from 68.53 yen.

The trade-weighted index decreased to 72.81 from 73.

(BusinessDesk)

BusinessDesk.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar gains on G20 preference for growth
NZ dollar dips as Wellington CBD checked for quake damage
NZ dollar gains, bolstered by RBA minutes, strong dairy prices
NZ dollar falls after central bank says it may scale up currency intervention
NZ dollar gains before CPI, helped by dairy gains, rally on Wall Street
NZ dollar trades little changed as US budget talks bear down on deadline
NZ dollar falls with equities on view US to sail over fiscal cliff
NZ dollar weakens as fiscal cliff looms, long bets unwind
NZ dollar sinks to three-week low as equities fall, fiscal talks in focus
NZ dollar slips as fiscal cliff talks grind slower in Washington

IRG See IRG research reports