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

 


NZ dollar ticks up on Chinese PMI report

NZ dollar ticks up on Chinese PMI report

Jan. 24 (BusinessDesk) - The New Zealand dollar market gleaned support from a positive purchasing managers' report in China after earlier being reassured by a vote that bought time on the US debt ceiling issue.

The kiwi was at 84.32 US cents at 5pm from 84.18 US cents at 8am and 84.05 cents at 5pm on Wednesday.

News that the HSBC Flash China manufacturing PMI rose to 51.9 in January from 51.5 in December helped the kiwi off its lows in afternoon trading.

It was the fifth consecutive monthly rise in the purchasing managers' index, which is at a two-year high.

"Despite the still tepid external demand, the domestic-driven restocking process is likely to add steam to China's ongoing recovery in the coming months," Hongbin Qu, head of Asian economic research at HSBC, said.

Traders said the index was credible and any strength in the Chinese economy would be welcomed in this part of the world, given Europe's difficulties and the budget problems in the US.

However, approval of an increase to the US federal borrowing ceiling for three months took the heat out of that issue.

Otherwise traders noted that the International Monetary Fund (IMF) had trimmed its 2013 forecast for global growth to 3.5 percent from the 3.6 percent it projected in October.

"The IMF's chief economist played down concerns that easy monetary policies in advanced economies risk sparking a 'currency war', saying there had not been a major surge of capital into emerging nations," HiFX analysts said.

ASB's Jane Turner said there was a small but growing chance the Reserve Bank of New Zealand would look at using macro-prudential tools over the coming year to try to ease housing market pressures.

ASB has also tweaked its view of the next move in the official cash rate by the central bank.

"We now expect the RBNZ to leave the OCR on hold until March 2014 - this compares to our expectation of a September 2013 increase just six weeks ago at the December monetary policy statement," she said.

The kiwi topped 80.17 Australian cents from 79.78 cents at 5pm on Wednesday.
It was at 75.24 yen from 74.48 yen, 63.32 euro from 63.14 euro and 53.27 British pence from 53.09 pence.

The trade-weighted index was at 75.64 from 75.45 at 5pm on Wednesday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Gordon Campbell: On Tiwai Point (And Saying “No” In Greece)

Its hard to see how Rio Tinto’s one month delay in announcing its intentions about the Tiwai Point aluminium smelter is a good sign for (a) the jobs of the workers affected or (b) for the New Zealand taxpayer. More>>

ALSO:

Half Empty: Dairy Product Prices Extend Slide To Six-Year Low

Dairy product prices continued their slide, paced by whole milk power, in the latest GlobalDairyTrade auction, weakening to the lowest level in six years. More>>

ALSO:

Copper Broadband: Regulator Set To Keep Chorus Pricing Largely Unchanged

The Commerce Commission looks likely to settle on a price close to its original decision on what telecommunications network operator Chorus can charge its customers, though it probably won’t backdate any update. More>>

ALSO:

Lower Levy For Safer Cars: ACC Backtracks On Safety Assessments

Dog and Lemon: “The ACC has based the entire levy system on a set of badly flawed data from Monash University. This Monash data is riddled with errors and false assumptions; that’s the real reason for the multiple mistakes in setting ACC levies.” More>>

ALSO:

Fast Track: TPP Negotiations Set To Accelerate, Groser Says

Negotiations for the Trans-Pacific Partnership will accelerate in July, with New Zealand officials working to stitch up a deal by the month's end, according to Trade Minister Tim Groser. More>>

ALSO:

Floods: Initial Assessment Of Economic Impact

Authorities around the region have compiled an initial impact assessment for the Ministry of Civil Defence, putting the estimated cost of flood recovery at around $120 million... this early estimate includes social, built, and economic costs to business, but doesn’t include costs to the rural sector. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news