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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Welcome Home: Record High Migration Stokes 41-Year High Population Growth

New Zealand annual net migration hit a new high in October as more people arrived from than departed for Australia for the first time in more than 20 years. More>>


Citizens' Advice Bureau: Report Shows Desperate Housing Situation Throughout NZ

CAB's in-depth analysis of over 2000 client enquiries about emergency accommodation shows vulnerable families, pregnant women and children living in cars and garages, even after seeking assistance from the Ministry of Social Development and Housing New Zealand. More>>


Speaking For The Bees: Greens Call For Neonicotinoid Pesticide Ban

The National Government should ban the use of controversial pesticides called neonicotinoids after evidence has revealed that even at low doses they cause harm to bee populations, the Green Party said today. More>>


Science Awards: NZAS Celebrate NZ Scientific Achievements

The Marsden Medal is awarded for a lifetime of outstanding service to the cause or profession of science, in recognition of service rendered to the cause or profession of science in the widest connotation of the phrase. This year’s medal is awarded to Dr Mike Andrews. More>>


Court Rules: Affco 'Unlawfully' Locked Out Meat Workers

The note says the full court found for the plaintiffs, "that is that the defendant locked out the second plaintiffs unlawfully and that it breached s 32 of the Act by acting otherwise than in good faith towards the plaintiffs while collective bargaining was still going on." More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news