Dollar up again on good local, bad global, economic news
New Zealand's currency spiked above 87UScents again today after more positive local economic data.
New Zealand’s currency spiked above 87USc again today after more positive local economic data.
The National Bank business confidence survey saw firms report a rise in expectations of their own activity, and investment and hiring intentions also move upwards.
The more recent surveys have shown high overall confidence about the country’s economic outlook but a bit more caution but managers’ expectations for their own firm.
Businesses ‘own activity’ result has generally been a solid leading indicator for economic growth.
The currency, which yesterday hit another post-float high – this time of 87.64USc before falling away overnight, rose again to 87.23USc.
Much of the rise prior to this afternoon’s confidence survey as due to offshore uncertainty, in particular the political deadlock in the United States over that country’s debt ceiling.
The Australian dollar rose even higher, to $US1.1062, and ANZ Bank currency strategist Grant Turley forecast the Australian dollar would read $US1.1200 by the end of the year.
Rob Hosking
Wed, 27 Jul 2011
Wed, 27 Jul 2011
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Dollar up again on good local, bad global, economic news
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