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

 


NZ dollar falls to 8-month low after Chinese PMI

NZ dollar falls to 8-month low after Chinese manufacturing contracts, Bernanke says watch the data

By Paul McBeth

May 23 (BusinessDesk) - The New Zealand dollar fell to an eight-month low after figures indicated Chinese manufacturing shrank this month and Federal Reserve chairman Ben Bernanke told politicians quantitative easing could be tapered off if the world’s biggest economy keeps getting better.

The kiwi fell as low as 80.15 US cents, trading at 80.26 cents at 5pm in Wellington from 80.69 cents at 8am, tumbling from 81.47 cents yesterday. The trade-weighted index sank to 76.06 from 76.82.

HSBC’s purchasing managers’ index showed a preliminary reading of 49.6 in May, where a reading below 50 indicates contraction, adding to signs China’s economy is slowing. That came after Bernanke told the Joint Economic Committee of Congress if the Fed sees sustainable improvement in the labour, “we will in steps respond to that by reducing the amount of accommodation in a way that’s appropriate.”

The prospect of the Fed unwinding its $85 billion a month asset purchase programme has underpinned gains in the greenback and the Chinese data “exacerbated the moves a bit more,” said Imre Speizer, market strategist at Westpac Banking Corp in Auckland. “The kiwi is heading towards 79.20 US cents, that’s the next big level and we might see that in days.”

Speizer said the kiwi dollar will likely come under pressure in coming months as local data shows up the impacts of the North Island drought, which is forecast to trim 0.7 percentage points from gross domestic product this year.

The next major local event is the Reserve Bank’s monetary policy meeting on June 13, where analysts will get an update on where governor Graeme Wheeler sees the economy. The bank has to contend with competing interests where a strong currency eating into export receipts while at the same time a heating property market is encouraging banks to write risker mortgage loans.

The local currency dropped to 82.44 yen from 83.56 yen yesterday and was little changed at 82.21 Australian cents from 83.29 cents. It sank to 62.46 euro cents from 63.06 cents yesterday, and fell to 53.39 British pence from 53.61 pence.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Houses (& Tobacco) Lead Inflation: CPI Up 0.3% In March Quarter

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays. More>>

ALSO:

Notoriously Reliable Predictions: Budget To Show Rise In Full-Time Income To 2018: English

This year’s Budget will forecast wage increases through to 2018 amounting to a $10,500 a year increase in average full time earnings over six years to $62,200 a year, says Finance Minister Bill English in a speech urging voters not to “put all of this at risk” by changing the government. More>>

ALSO:

Prices Up, Volume Down: March NZ House Sales Drop 10% As Loan Curbs Bite

New Zealand house sales dropped 10 percent in March from a year earlier as the Reserve Bank’s restrictions on low-equity mortgages continue to weigh on sales of cheaper property. More>>

ALSO:

Scoop Business: Chorus To Appeal Copper Pricing Judgment

Chorus will appeal a High Court ruling upholding the Commerce Commission’s determination setting the regulated prices on the telecommunications network operator’s copper lines. More>>

ALSO:

Earlier:

Cars: Precautionary Recalls Announced For Toyota Vehicles

Toyota advises that a number of its New Zealand vehicles are affected by a series of precautionary global recalls. Toyota New Zealand General Manager Customer Services Spencer Morris stressed that the recalls are precautionary. More>>

ALSO:

'Gardening Club': Air Freight Cartel Nets Almost $12 Million In Penalties

The High Court in Auckland has today ordered Swiss company Kuehne + Nagel International AG to pay a penalty of $3.1 million plus costs for breaches of the Commerce Act. Kuehne + Nagel’s penalty brings the total penalties ordered in this case to $11.95 million ... More>>

ALSO:

Crown Accounts: Revenue Below Projections

Core Crown tax revenue has increased by $1.9 billion (or 5.0%) compared to the same time last year. However this was $1.1 billion less than expected and is reflected across most tax types, continuing the pattern of recent months. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news