Kiwi down on weak retail sales

JAZIAL CROSSLEY
Last updated 17:18 14/11/2012

Relevant offers

National business

'Mini-boom' nudges average Wellington city houses prices just under $600,000 Mark Weldon right to resign from MediaWorks, former TV3 news boss says Kogan-run Dick Smith website hits the internet as stores close Career advice to a daughter: Don't do as I do NZ unemployment jumps to 5.7 per cent despite strong job growth Olympic swimmer Mark Weldon jumped in the deep end at MediaWorks Attention cat lovers: Ever wondered what your cat is trying to say? Australian budget could mean Kiwis less likely to report to Aussies Mediaworks staff say 'cheers' to departure of CEO Mark Weldon Air New Zealand denies woman from boarding heavy Tongan flight

The New Zealand dollar fell against the greenback today after weaker than expected retail sales figures were released.

The kiwi recently traded at US81.68c, down from US81.90c in the morning. On the Trade Weighted Index against major trading partners' currencies, it was at 73.10, down from 73.35 earlier.

Statistics New Zealand revealed mid-morning that New Zealanders spent $139 million less in the three months to September, with sales down 0.8 per cent overall after a 1.1 per cent rise the previous quarter.

"The kiwi today was all about the retail sales number that was much weaker than expected. The kiwi fell 40 basis points after the data came out. It has slightly recovered but this was more confirmation that the third quarter was a weak one in the New Zealand economy," Westpac market strategist Imre Speizer said.

"There was a little bit of Australian news that didn't have a great impact on the kiwi [a survey showed improved consumer confidence], there was no major news from elsewhere overseas."

Markets continue to watch the United States market for progress on the fiscal cliff, and any news from indebted European nations Greece and Spain.  

On the crosses, the kiwi recently traded at 78.12 Australian cents, down from A78.46c earlier. It was at 64.19 euro cents, down from 64.46 euro cents earlier. The kiwi fell to 51.40 pence, from 51.59 pence earlier. It was at 64.90 Japanese yen, a fall from 65.04 yen earlier.

Speizer expected the kiwi to trade between US81.60c and US82.00c overnight, with a bias towards the downside.

Ad Feedback

- BusinessDay.co.nz

Special offers

Featured Promotions

Sponsored Content