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

 


NZ dollar heads for 1.3% weekly gain on China, Euro outlook

NZ dollar heads for 1.3% weekly gain as China, Europe outlook improves

By Paul McBeth

Jan. 11 (BusinessDesk) - The New Zealand dollar is heading for a 1.3 percent weekly gain against the greenback after better-than-expected Chinese trade figures and an upbeat European Central Bank sapped demand for the world's reserve currency.

The kiwi fell to 84.25 US cents at 5pm in Wellington from 84.46 cents this morning, though up from 84 cents yesterday. The trade-weighted index was little changed at 75.61 from 75.67 yesterday, and may gain 1.7 percent this week.

The Dollar Index, a measure of the greenback against a basket of currencies, is heading for a 0.8 percent decline this week as investors look for riskier assets with bigger returns. Strong Chinese export figures yesterday stoked confidence in the world's second-biggest economy won't slow down as much as earlier feared, while ECB president Mario Draghi scotched talk of interest rate cuts and was more optimistic about the euro-zone.

"Until the Federal Reserve starts removing stimulus, the US dollar is going to remain under pressure," said Dan Bell, currency strategist at HiFX in Auckland. "We've got a short-term bias for the kiwi to the top side."

The kiwi climbed as high as 75.39 yen after Japan's Prime Minister Sinzo Abe unveiled a 10.3 trillion yen spending package to drive growth and stoke employment. New Zealand's currency rose to 74.95 yen 73.96 yen yesterday, and is heading for a 2.2 percent weekly gain.

Chinese inflation accelerated faster than expected to an annual pace of 2.5 percent in December, according to official figures today. That took some of the heat out of investors' risk sentiment. The kiwi fell to 5.2356 yuan from 5.2547 yuan yesterday.

New Zealand's currency dropped to 63.56 euro cents from 64.37 cents yesterday, and declined to 52.18 British pence from 52.42 pence yesterday. The kiwi was little changed at 79.62 Australian cents from 79.65 cents yesterday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Govt Resisting Pressure To Pump More Cash Into Solid Energy

Prime Minister John Key says it is “not the government’s preferred option” to make a fresh capital injection into the troubled state-owned coal miner, Solid Energy, but dodged journalists’ questions at his weekly press conference on whether that might prove necessary... More>>

ALSO:

Lagest Ever Privacy Breach Award: NZCU Baywide Accepts “Severe” Censure In Cake Case

NZCU Baywide says that once it was found to have committed a breach of a former staff member’s privacy, it had attempted to resolve the matter... the censure and remedies for its actions taken almost three years ago are “severe” but accepted, and will hopefully draw a line under the matter. More>>

ALSO:

Scoop Business: PayPal Stops Processing Mega Payments; NZX Listing Still On

PayPal has ceased processing payments for Mega, the file storage and encryption firm looking to join the New Zealand stock market via a reverse listing of TRS Investments, amid claims it is not a legitimate cloud storage service. More>>

ALSO:

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news