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Home / Business

NZ dollar rises on stronger GDP, Aussie jobs, Donald Trump impeachment

Jenny Ruth
BusinessDesk·
19 Dec, 2019 04:16 AM3 mins to read

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The kiwi was trading at 65.91 US cents at 5pm. Photo / 123RF

The kiwi was trading at 65.91 US cents at 5pm. Photo / 123RF

The New Zealand dollar rose on positive domestic economic data, better than expected Australian jobs numbers and after the greenback fell on the news of US President Donald Trump being impeached.

The kiwi was trading at 65.91 US cents at 5pm in Wellington from 65.73 cents at 8am while the trade-weighted index was at 72.55 points from 72.37. The domestic currency rose as high as 66.12 cents when the GDP headlines flashed across screens but fell just as sharply once the revisions sank in.

See live rates for the NZ-US $ below. Click for more information:

​

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The data showed the economy expanded by a greater-than-expected 0.7 per cent in the September quarter, although the June quarter increase was revised down to 0.1 per cent from 0.5 per cent. That meant the 2.3 per cent increase from the September quarter last year was bang on expectations.

Stats NZ said the growth was boosted by a 2.4 per cent jump in retail spending in the quarter.

"Higher retail consumption bodes well for rates on hold," said Martin Rudings, an adviser at OMF.

"It's certainly a lot stronger in this quarter than the Reserve Bank was expecting." RBNZ had forecast a 0.3 per cent increase in the latest quarter.

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"All in all, it was quite supportive," Rudings said.

The Australian data showed that economy added 39,900 new jobs in November, more than double the 15,000 expected, and the unemployment rate dropped to 5.2 per cent from 5.3 per cent. However, only 4,200 of the new jobs were full-time.

"Most of the support for the kiwi dollar is coming from the kiwi-Aussie cross," Rudings said. "There are clear signs that the Australian economy's going to remain under the pump with the bush fires."

A state of emergency was declared in New South Wales amid a record-breaking heatwave and forecast 100km/h winds.

Trump's impeachment for abuse of power and obstruction of congress.had been expected, and the senate is expected to acquit him. But the US dollar was sold off on the news of the vote, Rudings said.

No members of Trump's Republican Party supported the impeachment but the first article was carried 230 votes to 197 and the second was carried 230 to 198.

Trump is only the third US president to be impeached. It would require two-thirds of the 100 senators to vote to remove him from office and Republican senators number 53.

The New Zealand dollar was at 95.83 Australian cents from 95.87, at 50.37 British pence from 50.28, at 59.21 euro cents from 59.13 euro cents, at 72.23 yen from 72.03 yen and at 4.6177 Chinese yuan from 4.6004.

The two-year swap rate nudged up to a bid price of 1.2280 per cent from 1.2200 yesterday while 10-year swaps rose to 1.7400 per cent from 1.6930 per cent.

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