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

 

Fossils: Ancient Penguins Lived Alongside Dinosaurs?

Penguins are much older than previously thought and their evolution probably dates back to the days of the dinosaurs, according to research on the fossilised leg bone and toes of a giant ancient penguin found in rocks near Waipara, North Canterbury. More>>

No Voda/Sky: Commission Declines Clearance For Merger

The Commerce Commission has declined to grant clearance for the proposed merger of Sky Network Television and Vodafone New Zealand. More>>

ALSO:

EARLIER:

Power: IEA Report On New Zealand's Energy System

Outside of its largely low-carbon power sector, managing the economy’s energy intensity and greenhouse gas emissions while still remaining competitive and growing remains a challenge. More>>

ALSO:

NASA: Seven Earth-Size Planets Around A Single Star

NASA's Spitzer Space Telescope has revealed the first known system of seven Earth-size planets around a single star. Three of these planets are firmly located in the habitable zone, the area around the parent star where a rocky planet is most likely to have liquid water. More>>

ALSO:

Auckland Transport Case: Men Guilty Of Corruption And Bribery Will Spend Time In Jail

Two men who were found guilty of corruption and bribery in a Serious Fraud Office (SFO) trial have been sentenced in the Auckland High Court today... The pair are guilty of corruption and bribery offences relating to more than $1 million of bribes which took place between 2005 and 2013 at Rodney District Council and Auckland Transport. More>>

ALSO:

Hager Raid: Westpac Wrong To Release Bank Records To Police

The Privacy Commissioner has censured Westpac Banking Corp for releasing without a court order more than 10 months of bank records belonging to the political activist and journalist Nicky Hager during a police investigation into leaked information published in Hager's 2014 pre-election book, 'Dirty Politics'. More>>

ALSO:

EARLIER:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news