Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


NZ dollar gains in local trading as Chinese data improves

NZ dollar gains in local trading as Chinese data improves, threats remain

By Paul McBeth

Nov. 12 (BusinessDesk) - The New Zealand dollar gained in the local trading session as Chinese data showed the world's second-biggest economy was rebalancing towards domestic consumption, soothing fears of a sharp slowdown.

The kiwi rose to 81.58 US cents at 5pm in Wellington from 81.39 cents at 8am and 81.45 cents on Friday in New York. The trade-weighted index advanced to 73.06 from 72.94 last week.

Chinese industrial product gained 9.6 percent last month from a year earlier and retail sales rallied 15 percent, stoking optimism the world's most populous nation won't slow down as fast as earlier feared and drag down the global economic recovery. Still, investors are concerned about the US ability to bridge a gap between opposing political parties and avoid the 'fiscal cliff' of US$600 billion in tax hikes and federal spending cuts.

"Chinese demand is becoming more refocused on domestic consumption - the retail sales pick up shows more sustainable Chinese growth," said Imre Speizer, market strategist at Westpac Banking Corp in Auckland. "The fiscal cliff is the biggie to watch this week" and the kiwi may "drift lower down to 80.60 US cents" as investors remain nervous about the global situation, he said.

Five of six traders and strategists in a BusinessDesk survey say the kiwi may weaken this week after last week's household labour force survey showed unemployment at a 13-year high, lending greater weight to third-quarter data, including retail sales on Wednesday.

The kiwi traded at 64.83 yen from 64.71 yen last week after government figures showed Japan's economy shrank 0.9 percent in the September quarter, and is at risk of tipping in recession with a contraction forecast for the December period.

New Zealand's currency edged up to 64.12 euro cents from 64.06 cents on Friday in New York after Greek legislators agreed to deep budget cuts in a bid to secure its bail-out package. European finance chiefs will meet today in Brussels to discuss the rescue funding.

The kiwi dollar was little changed at 78.31 Australian cents from 78.38 cents last week, and edged up to 51.31 British pence from 51.23 pence.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Postnatal Depression: 'The Thief That Steals Motherhood' - Alison McCulloch

Post-natal depression is a sly and cruel illness, described by one expert as ‘the thief that steals motherhood’, it creeps up on its victims, hiding behind the stress and exhaustion of being a new parent, catching many women unaware and unprepared. More>>


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Health: New Zealand's First ‘No Sugary Drinks’ Logo Unveiled

New Zealand’s first “no sugary drinks logo” has been unveiled at an event in Wellington... It will empower communities around New Zealand to lift their health and wellbeing and send a clear message about the damage caused by too much sugar in our diets. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news