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

 

ETS Review: Modelling Documents Released

Three technical documents are being released to help New Zealanders engage with the Emissions Trading Scheme (ETS) review, Climate Change Minister Paula Bennett says. More>>

ALSO:

Northland: Govt Plan Targets Transport, Web, Maori Assets

The government has released a 10-year plan to attract investors and lift economic growth in Northland, a region that perennially underperforms the rest of the country even while being endowed with natural beauty, productive land, minerals, a potential workforce, scope for manufacturing, forestry and aquaculture, and proximity to Auckland. More>>

ALSO:

Statistics: Unemployment Rate Falls To 5.3 Percent

The unemployment rate fell to 5.3 percent in the December 2015 quarter (from 6.0 percent), Statistics New Zealand said today. This is the lowest unemployment rate since March 2009. There were 16,000 fewer people unemployed than in the September ... More>>

ALSO:

Employment: Labour Urges Talley’s To End AFFCO Lockout

Labour has urged Talley’s to resolve the ongoing industrial dispute with AFFCO workers which is having a severe effect on the employees, their families and their communities, Labour’s Workplace Relations spokesperson Iain Lees-Galloway says. More>>

ALSO:

Three Kings: Govt To Oppose Appeal Blocking $1.2B Auckland Housing Plan

Environment Minister Nick Smith and Housing New Zealand have joined legal proceedings in support of Auckland Council and Fletcher Building opposing a bid by community groups to only allow low-rise housing in a $1.2 billion housing redevelopment on the disused site of the Three Kings quarry. More>>

ALSO:

Transport: Jetstar Expands Regional Network With Three New Routes

More New Zealanders than ever before will have access to Jetstar’s affordable flights when new services take off today from Auckland to New Plymouth and Palmerston North, and Nelson to Wellington. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news