Kiwi steady after retail stats underwhelm

Weaker than expected New Zealand retail statistics have been offset by US industrial production declining in kiwi-US dollar trading.

The New Zealand dollar is little changed after weaker than expected consumer spending figures failed to spook investors.

The kiwi traded at 83.75 US cents at 5pm in Wellington from 83.77 cents at 8am and 83.64 cents on Friday in New York. The trade-weighted index edged up to 78.43 from 78.29 last week.

New Zealand retail sales rose 1.2 per cent in the final three months of 2013, according to Statistics New Zealand, short of the 1.5 per cent growth predicted in a Reuters survey of economists.

Still, the kiwi didn't fall out of favour after a manufacturing report in the US showed industrial production reported its biggest decline in more than four years as the harsh winter disrupted the world's biggest economy.

"There's been a number of bad-weather impacts in economic activity reflected in the data, and that's hurting the US dollar as a consequence," said Michael Johnson, senior trader at HiFX in Auckland.

"I'm happy to be long the kiwi, which can grind higher, but it hasn't got a million miles more in it."

A public holiday in the US is expected to keep markets quiet during the northern hemisphere session.

New Zealand's economic outlook also got a boost from the BNZ-BusinessNZ performance of services index, which showed the sector expanded at its fastest pace in six-and-a-half years in January, with new orders failing to keep up with demand.

The kiwi was little changed at 92.43 Australian cents at 5pm in Wellington from 92.54 cents on Friday in New York, unchanged at 85.12 yen from the New York close, and also steady at 61.08 euro cents.


2 min read

Published

Updated

Source: AAP


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