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

Father's Day SOON! Crazy Deals on ALL IRG Yearbooks - More than 50% OFF - $19.99 for 44th IRG Yearbook 2018-2019


  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 rises after Orr talks up the economy
Comvita posts $27.7m net loss on goodwill write-downs
Buyers emerge for Denton Morrell client book
WEL reviewing capital structure of fibre business
Cavalier announces strategic collaboration with NZ Merino Company
Delegat continues to invest after record year
Kiwibank's annual profit eases as fee income drops
TIL lifts operating earnings, watching for slowdown
Vector profit slides 44% on struggling HRV writedown
Steel & Tube returns to the black but says margins are squeezed

IRG See IRG research reports