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

 


NZ dollar slips as Chinese shadow banking fears re-emerge

NZ dollar slips as Chinese shadow banking fears re-emerge ahead of economic data

Jan. 20 (BusinessDesk) - The New Zealand dollar fell as fears over China’s financial sector re-emerged on reports a troubled trust product won’t be bailed out, ahead of economic data which is expected to show the world’s second-biggest economy is still growing, albeit at a slower pace.

The kiwi fell to 82.46 US cents at 8am from 82.62 cents at the close of trading in New York on Friday, and 82.99 cents at 5pm in Wellington. The trade-weighted index dropped to 78.40 from 78.78 last week.

China’s economy grew at an annual pace of 7.6 percent in the fourth quarter, according to a Reuters poll of economists, slowing from 7.8 percent in the previous quarter. Traders will be monitoring the strength of the gross domestic product, industrial production and retail sales data after media reports that Industrial & Commercial Bank of China is refusing to bail out a troubled 3 billion yuan trust product reignited fears over the stability of the nation’s financial system.

“Market chatter is talking about credit conditions in China and increasing concerns over the shadow banking sector,” said Sam Tuck, senior FX strategist at ANZ New Zealand in Auckland. “If the Chinese data comes in softer, the Aussie and kiwi will struggle.”

US markets are closed on Monday for Martin Luther King Day, putting the Chinese data under more scrutiny.

New Zealand inflation figures tomorrow are expected to show an annual pace of 1.4 percent, which economists say will be benign enough for the Reserve Bank to hold off hiking interest rates until March.

The local currency fell to 85.80 yen at 8am in Wellington from 86.58 yen last week, and decreased to 93.93 Australian cents from 94.11 cents. It slipped to 60.86 euro cents from 60.95 cents last week, and dropped to 50.20 British pence from 50.79 pence.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Finance: Major Campaign To End "Gross Overtaxation Of Savings"

The campaign – which includes a special web site through which New Zealanders can e-mail their own and other MPs and party leaders – is backed by Age Concern, Consumer NZ, the Financial Services Council and the Taxpayers’ Union. More>>

ALSO:

Scoop Business: Leighton-Led WGP To Build, Manage Transmission Gully

The Wellington Gateway Partnership, led by a unit of ASX-listed Leighton Holdings, has won the $1 billion contract to build the Transmission Gully road north of Wellington. More>>

ALSO:

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news