Positive economic data, including the narrowing current account deficit, moved the kiwi higher today. Michael Cullen, New Zealand?s Finance Minister, spoke today saying that the economy was growing “unsustainably fast,” causing the dollar to nearly reach a 22-yr high.
New Zealand?s current account deficit narrowed to $2.2 billion. The easing deficit was attributed to dairy product exports and overseas New Zealand investments.
Source: The Daily Herald
Business confidence was unaffected by a soaring New Zealand dollar and high New Zealand interest rates. National Bank?s index showed 37% of participants anticipate weakening conditions over the coming year, an improvement from last month.
http://www.stuff.co.nz/4111298a13.html
Source: stuff.co.nz
Today, Paul Reynolds was appointed CEO of Telecom Corp., New Zealand?s largest telephone company. Similar to his last job at BT Group Plc., Reynolds?s first task will be to separate Telecom?s wholesale and retail departments in order to comply with government regulations.
http://www.bloomberg.com/apps/news?pid=20601081&sid=aJp618QRssl0&refer=australia
Source: Bloomberg
Currency
Positive economic data, including the narrowing current account deficit, moved the kiwi higher today. Michael Cullen, New Zealand?s Finance Minister, spoke today saying that the economy was growing “unsustainably fast,” causing the dollar to nearly reach a 22-yr high. As positive economic indicators continue to emerge, interest rate hike speculation circles the RBNZ. The New Zealand dollar was most recently quoted against the US dollar at 0.7701.
Equity
Leading the NZX higher, Telecom Corp.?s stock rose 2% on its appointment of new CEO Paul Reynolds. However, NZX gains were subdued as Air NZ continued to fall another 2 cents due to Qantas?s 4.2% stake pullout yesterday. The NZX was most recently quoted up 6.64 points at 4,209.90.
Fixed Income
Government bond yields extended their fall as credit scares from overseas weighted the debt instruments down. With US sub-prime defaults and Bear Stearns hedge fund fall-outs still lingering, investors around the world parked their money in safer investments. The benchmark 10-year New Zealand government bond was most recently quoted up at 94.85.
