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

 


NZ dollar falls on weak Chinese data, US tapering talk

NZ dollar falls on weak Chinese manufacturing, Fed tapering talk

By Paul McBeth

Jan. 23 (BusinessDesk) - The New Zealand dollar fell as weaker than expected Chinese manufacturing data raised concerns about the world’s second biggest economy, and amid speculation the US Federal Reserve will further reduce its stimulus when it reviews policy next week.

The kiwi fell to 82.74 US cents at 5pm in Wellington from 83.06 cents at 8am and 83.22 cents yesterday. The trade-weighted index declined to 78.61 from 78.86 yesterday.

Chinese manufacturing activity shrank this month, according to the preliminary reading of the Markit/HSBC Purchasing Managers’ Index, raising fears about the strength of the nation’s economy and weighing on the prospects for New Zealand and Australian trade.

The Chinese data added to weakness in the kiwi dollar after a report by Wall Street Journal Fed watcher Jon Hilsenrath predicted the US central bank would trim another US$10 billion from its monthly asset purchases to US$65 billion at next week’s policy meeting.

“The Chinese manufacturing PMI flash from HSBC was a lot worse than expected,” said Stuart Ive, senior client adviser at OMF in Wellington. The kiwi may trade between 82.50 US cents and 83.20 cents in the near-term, and will be “very data dependent” with European and US manufacturing figures due, he said.

The kiwi rose to 94.03 Australian cents from 93.81 cents yesterday with the Chinese data weighing more heavily on Australia’s currency, as China is that country’s largest export market. New Zealand’s dollar lost ground on the cross-rate yesterday when December inflation data was more than expected.

New Zealand manufacturing and consumer confidence surveys today continued to show the local economy is gathering momentum.

Traders are waiting for New Zealand’s Reserve Bank to review monetary policy next week. They continue to price in a 46 percent chance governor Graeme Wheeler will lift the official cash rate from its record-low 2.5 percent. Wheeler is scheduled to speak to the Canterbury Employers’ Chamber of Commerce the following day on Jan. 31.

The local currency dropped to 61.06 euro cents from 61.31 cents yesterday, and sank to 49.93 British pence from 50.49 pence. It decreased to 86.37 yen at 5pm in Wellington from 86.54 yen yesterday.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Wine: 20% Of Marlborough Storage Tanks Damaged By Quake

An estimated 20 percent of wine storage tanks in the Marlborough region, the country’s largest wine producing area, have been damaged by the impact of the recent Kaikoura earthquake. More>>

ALSO:

ACC: Levy Recommendations For 2017 – 2019 Period

• For car owners, a 13% reduction in the average Motor Vehicle levy • For businesses, a 10% reduction in the average Work levy, and changes to workplace safety incentive products • For employees, due to an increase in claims volumes and costs, a 3% increase in the Earners’ levy. More>>

Women's Affairs: Government Accepts Recommendations On Pay Equity

The Government will update the Equal Pay Act and amend the Employment Relations Act to implement recommendations of the Joint Working Group on Pay Equity. More>>

ALSO:

Immigration: Increase In Seasonal Workers For RSE

The current cap will be increased by 1,000 from 9,500 to 10,500 RSE workers for the 2016-17 season. Mr Woodhouse says the horticulture and viticulture industry is New Zealand’s fourth largest export industry, producing almost $5 billion in exports. More>>

ALSO:

Hurunui: Crown Irrigation Invests Up To $3.4m In North Canterbury

Crown Irrigation Investments will invest up to $3.4m in the Hurunui Water Project, an irrigation scheme that will be capable of irrigating up to 21,000 hectares on the south side of the Hurunui River in North Canterbury. More>>

ALSO:

Not So Great:Butterfly Eradication Success

The invasive pest great white butterfly has been eradicated from New Zealand in a world-first achievement, Primary Industries Minister Nathan Guy and Conservation Minister Maggie Barry say. More>>

Gordon Campbell: On The Government’s Tax Cuts Fixation

Long before the earthquake hit, the dodginess of the government tax cuts programnme was evident in the language of its packaging. It is being touted as a “tax cuts and family care” package... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news