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.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

OceanaGold: Man Killed In Waihi Mine Accident

A 29-year-old man had died following a work place accident at OceanaGold mine, Waihi last night. The man was killed after the front end loader he was in rolled down a slope. The accident happened at approximately 6.30pm on Thursday night. More>>

ALSO:

Constructing Consent: Annual Housing Consents Highest In Over A Decade

More than 29,000 new homes gained building consent in the year to June 2016, up 16 percent from the previous June year, Statistics New Zealand said today. More>>

ALSO:

War Against Weevil For Future Peas: “No Peas, No Weevil” Ban Now In Place In Wairarapa

The Ministry for Primary Industries (MPI) has today placed a ban on growing peas within a specified area and placed controls on moving pea material (seed and untreated pea straw) within, in and out of this area for the next 2 years. More>>

ALSO:

Wood Producers: Crisis In New Zealand Log Supply

New Zealand wood processing leaders held a hui with senior government officials and political leaders in Whangarei yesterday to assess the acute log supply shortage to local mills in Northland. More>>

Consents And Taxes: Trustpower 'Very Disappointed' With Judgement

Trustpower is "very disappointed" with a Supreme Court ruling dismissing its bid to claim tax deductions on $17.7 million of project costs in a case closely watched by large-scale infrastructure developers. More>>

ALSO:

Fruitful Endeavours: Kiwifruit Exports Reach Record Levels

In June 2016, kiwifruit exports rose $105 million (47 percent) from June 2015 to reach $331 million, Statistics New Zealand said today. Overall, goods exports rose $109 million (2.6 percent) in June 2016 (to $4.3 billion). More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news