CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

New Zealand dollar drops as business confidence sinks to 9-year low

IG Analyst

Publication date : 2018-10-02T05:15:00+0100

ig_trading_floor_4

The New Zealand Institute of Economic Research (NZIER) released a quarterly survey measuring business confidence, which showed 30% of firms surveyed expected dire business conditions in NZ over the next year.

The number of firms worried about the economy is up 10% from the previous quarter, which showed only 20% of firms surveyed had worried about business conditions.

A net 0.4 % of firms reported higher demand over the September quarter – the lowest level since September 2012.

The survey shows firms are worried about Government policy, labour costs and availability of labour operating margins, showing these factors were key considerations for businesses when it came to assessing general economic conditions.

Retailers, manufacturers and builders were more influenced by concerns over labour shortages and costs and consumer confidence, suggesting uncertainty over the effects of new Government policies over the past year.

Economists say the NZIER survey could potentially raise central bank concerns over global growth outlook.

The Royal Bank of New Zealand (RBNZ) has already downgraded its forecasts for 2019’s GDP from 3.1% to 2.6%.

The New Zealand dollar suffered upon the news, pushing down to a low of $0.659. This comes after the dollar improved when positive businesses figures were released last week.

The ANZ bank monthly confidence survey showed slight improvements in business confidence, which pushed the New Zealand dollar to positive highs, however analysts believed while the results showed improvement, there was still gloom in store for the New Zealand economy.

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IG Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.

Find articles by writer

Find out more about

Trading forex
Forex CFD details

Disclaimer:

All forms of investments carry risks and trading CFDs may not be suitable for everyone. CFDs are leveraged instruments and can result in losses that exceed deposits, so please ensure that you fully understand, and are aware of, the risks and costs involved. Refer to the Risk Disclosure Statement and Risk Fact Sheet.

IG Asia Pte Ltd (Co.Reg.No. 200510021K) is regulated by the Monetary Authority of Singapore and holds a capital markets services licence for dealing in capital markets products that are over-the-counter derivatives contracts and is an exempt financial adviser.

IG provides an execution-only service. The information in this advertisement does not contain (and should not be construed as containing) investment advice or an investment recommendation, or an offer of or solicitation for a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. You should consider your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

The information on this site is not directed at residents of the United States or Belgium and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

This advertisement has not been reviewed by the Monetary Authority of Singapore.