NZ dollar falls on weak data

The New Zealand dollar fell today on news of weak building consents and weak business confidence and as equity markets fell.

The NZ dollar was US73.57c at 5pm from US73.90c at 8am and US73.89c at 5pm yesterday. It had pushed to a week high around US74.05c overnight.

News that business confidence, as measured by the National Bank Business Outlook survey, slipped in September was a negative factor. The survey's authors said there was a real danger that an overly cautious stance by business could become self-fulfilling.

New Zealand building consent data for August was also weak, leading ASB economists to conclude that the Reserve Bank of New Zealand will not resume the process of returning monetary condition to normal levels until March next year.

The Australian dollar also dipped when a disappointing 4.7 per cent drop in building approvals in August triggered a bout of profit-taking. It fell from US97.04c to be US96.66c at 5pm. The aussie traded at US98.50c in July 2008 which was its highest level since being floated in 1983.

The NZ dollar had dropped below A76c against the Australian dollar for the first time in nearly six months on Wednesday night when the Australian currency was strong.

It was A76.07c at 5pm after falling to A75.86c on Wednesday night from A76.33c at 5pm yesterday.

The US dollar was stuck near an eight month low in Asian trading today.

The NZ dollar was at 0.5410 euro from 0.5436 euro yesterday and at 61.49 yen from 61.86 yen. The trade weighted index was 66.28 at 5pm from 66.568 yesterday.

- NZPA