Sharechat Logo

NZ dollar gains against euro as Draghi comments weigh, US retail sales loom

Monday 12th May 2014

Text too small?

The New Zealand dollar gained against the euro after European Central Bank president Mario Draghi signalled more easing in the euro region and as traders await US and kiwi retail sales and growth reports for both the EU and Japan.

The New Zealand dollar traded at 62.66 euro cents at 5pm in Wellington, little changed from the morning and up from 62.40 cents on Friday. The kiwi was at 86.24 US cents from 86.16 cents at 8am in Wellington and from 86.10 cents at the New York close on Friday. The trade-weighted index was little changed at 80.13.

Dragi said last week that Europe's recovery is "at a slow pace and it still remains fairly modest" after keeping the ECB's benchmark interest rate at a record low of 0.25 percent. Figures on Thursday are expected to show the euro area economy grew 0.4 percent in the first quarter, picking up pace from a 0.2 percent rate three months earlier. By contrast, Japan's economy probably sped to a 1.1 percent pace.

"The euro is clearly in focus after the ECB head warned that growth is a concern," said Alex Hill, head of dealing at HiFX.

Traders will be watching New Zealand first-quarter retail sales, scheduled for Wednesday and expected to show growth slowed to 0.5 percent from 1.2 percent, while US retail sales probably slowed to 0.4 percent in April from 1.1 percent in the previous month.

Also on Wednesday, Reserve Bank governor Graeme Wheeler is scheduled to speak after the release of the latest financial stability report and later to parliament's finance committee and traders will be listening for any insight into the pace of interest rate increases, Hill said.

The New Zealand dollar traded at 92.07 Australian cents from 91.96 Australian cents at the start of the day and from 92.25 cents on Friday. It was at 51.15 British pence, little changed from 8am and from 51.03 pence on Friday. The kiwi dollar rose to 87.95 yen from 87.77 yen at the start of the day and from 87.82 yen on Friday.

 

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:

Plexure sees revenue growth from White Castle deal
22nd July 2019 Morning Report
NZ dollar treading water as markets focus on Iran
MARKET CLOSE: NZ shares extend gain as passive funds bolster prices; Tourism Holdings climbs
NZ dollar headed for 1.3% weekly gain on expectations of a Fed rate cut
RBNZ knock-back gives Resolution chance to low-ball AMP - Jarden
Rail hubs may not boost Napier Port log trade
O'Connor looks to overhaul Biosecurity Act, improve animal tracing
Denton Morrell undefended at liquidation hearing
Contact steam to heat Norske Skog pellet business secured

IRG See IRG research reports