Kiwi slides as retail sales point to weak economy in third quarter

Free audio stream, including stories that are padlocked on our site. Listen on any device, anywhere. Updated twice daily. The audio stream takes several seconds to start on Android devices.

Launch Radio player

The New Zealand dollar has fallen against most of its trading peers after figures show a drop in third-quarter retail sales, adding to weak employment numbers and suggesting the economy has hit a pothole.

The kiwi traded at 81.69 US cents from 81.88 cents at 8am in Wellington and from 81.66 cents in late trading the previous day. The trade-weighted index fell to 73.12 from 73.37 this morning.

Government figures today showed the volume of retail sales fell 0.4%, seasonally adjusted, in the three months ended September 30, against a Reuters survey calling for a 0.5% gain.

That adds to the gloom from data last week showing the jobless rate unexpectedly jumped to 7.3%, suggesting the economy's pace is stumbling.

Retail sales are "more evidence that the third quarter of this year was a soft patch for the New Zealand economy", says Imre Speizer, senior markets strategist at Westpac Banking Corp.

More up-to-date data, including business sentiment, suggests the economy has sped up again in the fourth quarter, he says.

The kiwi fell to 78.15 Australian cents from 78.45 cents. It did not move much after Australia's wage cost index for the third quarter rose 0.7%, close to market expectations of a 0.8% gain, for a year-on-year increase of 3.7%.

Mr Speizer says the figures do show some evidence that wage inflation is starting to slow in the mining sector.

The kiwi fell to 64.95 yen from 65.09 yen and slid to 64.21 euro cents from 64.47 cents. It dropped to 51.41 British pence from 51.62 pence.

(BusinessDesk)


This article is tagged with the following keywords. Find out more about MyNBR Tags

Comments & Questions

Commenter icon key: Subscriber Verified

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7567 0.0000 0.00%
AUD 0.9753 0.0000 0.00%
EUR 0.6945 0.0000 0.00%
GBP 0.5084 0.0000 0.00%
HKD 5.8650 0.0000 0.00%
JPY 90.0730 0.0000 0.00%

Commods

Commodity Price Change Time
Gold Index 1198.2 -6.000 2015-03-27T00:
Oil Brent 56.4 2.710 2015-03-27T00:
Oil Nymex 48.9 -2.560 2015-03-27T00:
Silver Index 17.1 -0.071 2015-03-27T00:

Indices

Symbol Open High Last %
NZX 50 5833.2 5854.2 5833.2 0.36%
NASDAQ 4863.7 4899.3 4863.4 0.57%
DAX 11920.2 11954.1 11843.7 0.21%
DJI 17673.6 17729.1 17678.2 0.19%
FTSE 6895.3 6910.6 6895.3 -0.58%
HKSE 24541.4 24549.9 24497.1 -0.04%
NI225 19374.7 19590.0 19471.1 -0.95%