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

 

MPI: Cow Disease Detected In NZ For First Time

MPI is responding to the detection of the cattle disease Mycoplasma bovis in a dairy herd in South Canterbury... The disease is commonly found in cattle globally, including in Australia, but it’s the first detection of it in New Zealand. More>>

South Island Flooding: Focus Moves To Recovery

As water recedes throughout flood-impacted areas of the South Island, Minister of Civil Defence Nathan Guy has praised the efforts of those who were involved in the response to the flooding... More>>

ALSO:

Superu Report: Land Regulation Drives Auckland House Prices

Land use regulation is responsible for up to 56 per cent of the cost of an average house in Auckland according to a new research report quantifying the impact of land use regulations, Finance Minister Steven Joyce says. More>>

ALSO:

Fund For PPP Plans: Govt Embraces Targeted Rates To Spur Urban Infrastructure

The government's latest response to the Auckland housing shortage will see central government and private sector firms invest in 'special purpose vehicles' to fund essential roading, water and drains that Auckland Council can't fund without threatening its credit rating. More>>

ALSO: