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


NZ dollar rallies as Chinese trade surplus grows

NZ dollar rallies as Chinese trade surplus grows, stoking confidence in economy

By Paul McBeth

Jan. 10 (BusinessDesk) - The New Zealand gained as a stronger-than-expected Chinese trade surplus stoked investors' confidence the world's second-biggest economy has weathered a slowdown and can regain momentum.

The kiwi gained to 84 US cents at 5pm in Wellington from 83.82 cents at 9am and 83.81 cents yesterday. The trade-weighted index climbed to 75.66 from 75.44.

China's trade surplus almost doubled to US$31.6 billion in December from the same month a year earlier on a 14 percent jump in exports and a 6 percent increase in imports. China is Australia's biggest trading partner and New Zealand's second-biggest behind its closest neighbour, meaning its economic fortunes weigh heavily on the trans-Tasman currencies.

New Zealand government figures today showed a slightly wider-than-expected local trade deficit of $700 million in November, while QV data showed property values rose 5.7 percent last year and ANZ figures showed an increase in commodity prices last month.

"The kiwi data continues to be positive and China's recovery is starting to show evidence and today's trade data added to that," said Imre Speizer, market strategist at Westpac Banking Corp in Auckland. "The kiwi will continue to outperform - look at economic fundamentals and they're pretty good, the outlook is pretty good and interest rates will eventually turn positive."

Speizer said he expects the currency to temporarily shed some gains against the greenback for a few days before rising to test the 84.75 US cents high it reached last year.

The kiwi fell to 79.61 Australian cents at 5pm from 79.85 cents yesterday after the Chinese trade data, with the bigger nation having greater export exposure to the world's most populous country. Official figures also showed Australian home building permits rose 2.9 percent in November as lower interest rates encouraged plans for apartment projects.

The New Zealand dollar climbed as high 74.08 yen, the highest level since September 2008, and traded at 73.93 yen at 5pm from 73.28 yen yesterday. Japan's currency weakened after Prime Minister Shinzo Abe urged the central bank to double its inflation target to 2 percent. Bank of Japan governor Masaaki Shirakawa yesterday said he's working closely with the government ahead of the bank's next meeting on Jan. 21 to 22.

The kiwi gained to 64.34 euro cents from 64.08 cents yesterday ahead of the European Central Bank's monetary policy review, and increased to 52.42 British pence from 52.22 pence before the Bank of England reviews its benchmark interest rate and quantitative easing programme.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Science Investment Plan: Universities Welcome Statement

Universities New Zealand has welcomed the National Statement of Science Investment released by the Government today... this is a critical document as it sets out the Government’s ten-year strategic direction that will guide future investment in New Zealand’s science system. More>>


Scouring: Cavalier Merger Would Extract 'Monopoly Rents' - Godfrey Hirst

A merger of Cavalier Wool Holdings and New Zealand Wool Services International's two wool scouring operations would create a monopoly, says carpet maker Godfrey Hirst. The Commerce Commission on Friday released its second draft determination on the merger, maintaining its view that the public benefits would outweigh the loss of competition. More>>


Scoop Review Of Books: She Means Business

As Foreman says in her conclusion, this is a business book. It opens with a brief biographical section followed by a collection of interesting tips for entrepreneurs... More>>


Hourly Wage Gap Grows: Gender Pay Gap Still Fixed At Fourteen Percent

“The totally unchanged pay gap is a slap in the face for women, families and the economy,” says Coalition spokesperson, Angela McLeod. Even worse, Māori and Pacific women face an outrageous pay gap of 28% and 33% when compared with the pay packets of Pākehā men. More>>


Housing: English On Housing Affordability And The Economy

"Long lead times in the planning process tend to drive prices higher in the upswing of the housing cycle. And those lead times increase the risk that eight years later, when additional supply arrives, the demand shock that spurred the additional supply has reversed. The resulting excess supply could produce a price crash..." More>>


Sweet Health: Sugary Drinks Banned From Hospitals And Health Boards

All hospitals and DHBs are expected to kick sugary drinks out of their premises. University of Auckland researcher, Dr Gerhard Sundborn who also heads public health advocacy group “FIZZ”, says he welcomes the initiative. More>>


NASA: Evidence Of Liquid Water On Today's Mars

Using an imaging spectrometer on MRO, researchers detected signatures of hydrated minerals on slopes where mysterious streaks are seen on the Red Planet. These darkish streaks appear to ebb and flow over time. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news