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

 


NZ dollar may gain as Chinese data, Fonterra forecast loom

NZ dollar may gain as Chinese data, Fonterra forecast loom

By Paul McBeth

Dec. 10 (BusinessDesk) - The New Zealand may gain with more Chinese economic data coming later today and amid expectations Fonterra Cooperative Group will announce a hike in its forecast payout to farmers tomorrow.

The kiwi traded at 82.90 US cents at 5pm in Wellington from 82.70 cents at 8am and 82.91 cents yesterday. The trade-weighted index was 77.78 from 77.83 yesterday.

Traders are waiting on Chinese industrial production and retail figures to show more signs the world’s second biggest economy is climbing out of a rut earlier this year, adding to optimism after a better-than-expected trade surplus was reported on the weekend. A strong print could support risk-sensitive assets such as the kiwi, and New Zealand’s currency is likely to get a boost if Fonterra lifts its forecast payout to farmers after continued strength in global dairy prices.

If Fonterra raises its payout, “it wouldn’t be a surprise – there’s a 20 to 40 cent range for a lift in the price” forecast by analysts, said Chris Tennent-Brown, FX economist at Commonwealth Bank of Australia in Sydney. Strong Chinese data and a Fonterra hike “could help the kiwi.”

New Zealand’s Reserve Bank will review monetary policy on Thursday and is expected to keep the key rate at 2.5 percent, though it might have to tweak its forward guidance on the path for rate hikes due to the strength of the currency.

CBA’s Tennent-Brown said a slower or less aggressive tightening policy could take the steam out of the kiwi/Australian cross-rate, which has been at five-year highs due to the divergent economic fortunes of the neighbouring nations. The kiwi rose to 91.04 Australian cents from 90.81 cents yesterday.

The local economy got another boost from figures showing better than expected consumer spending on credit and debit cards last month. Seasonally adjusted retail spending on electronic cards rose 0.6 percent in November to $4.53 billion, ahead of the 0.4 percent pace predicted in a Reuters survey of economists.

The New Zealand dollar could find more support before the Christmas trading season begins, with the government’s half-year economic and fiscal update next Tuesday, and third-quarter gross domestic product and balance of payments also down for next week.

The kiwi slipped to 50.38 British pence at 5pm in Wellington from 50.74 pence yesterday, and declined to 60.26 euro cents from 60.50 cents. It climbed to 85.63 yen from 85.32 yen yesterday.

(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