New Zealand Business Confidence

The New Zealand Business Confidence came in significantly stronger for January at an expansionary reading of 50.1 versus the prior reading of 38.5. However, the Kiwi and the rest of the market have had muted reaction as the USD and JPY are moving risk and commodity pairs lower this session. Business Conditions also improved to a reading of 41.9 versus 36.9 the prior month.

New Zealand PPI

The market had a lack luster reaction to worse than expected PPI data out of New Zealand. The details are as follows:

• Producer Prices - Inputs (QoQ) - Survey: 0.5%   Actual: 0.3%   Prior: -1.1%
• Producter Prices - Outputs (QoQ) - Survey: 0.4%   Actual: -0.4%   Prior: -1.4%

New Zealand Q4 Employment Report

The New Zealand Employment Rep0rt came out  worse than expected, pushing the Kiwi back down toward the 70 cent handle and then through. The details of the release are as follows:

Unemployment Rate - Survey:6.8%   Actual:7.3%   Prior:6.5%

Participation Rate (QoQ) - Survey:68.1%   Actual:68.1%   Prior:68%

Employment Change (QoQ) - Survey:-0.1%   Actual: -0.1%  Prior:-0.8%

Employment Change (YoY) - Survey:-2.5%   Actual:-2.4%   Prior:-1.8%

NZ Finance Minister English on the wires….

New Zealand Finance Minister Bill English made these statements in a speech he made a little earlier this evening:

• New Zealand forecasts 2010 budget cash deficit at $10.09 bln.
• 2010 deficit will be narrow that forecasted.
• NZ jobless rate will peak at 7.0%.
• A high NZD is a headwind for exporters.
• The global economy has a “long way to go”.

New Zealand Business NZ Manufacturing Index

The NZD showed a limited reaction to November’s NZ manufacturing Index which came in at 60.4; much better than the previous release of 50.6. The kiwi is currently trading at .7191 against the USD.

NBNZ Business Confidence

New Zealand Business Confidence weakened in November to 43.4 from to 48.2. The market had a limited reaction to this release as other factors are moving the market.

New Zealand Consumer Confidence

The market had a minimal reaction to a falling New Zealand Consumer Confidence reading that fell to 121.5 from 125.9 in November. The commodity and risk pairs continue to rally to session highs on continued economic optimism.

New Zealand Finance Minster English

The NZ Finance Minister Bill English had the following comments during an interview, which sent the Kiwi slightly lower:

• NZ recovery from recession to be slow.
• Rising NZD is a challenge and pressures manufacturers.
• Consumers unsure on housing and employment.
• The USD looks likely to decline further.
• New Zealand consumers are reluctant to spend.

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