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

 

Statistics: Dairy And Travel Still Our Largest Export Earners

New Zealand earned $2.3 billion more from exports than we spent on imports during the year ended June 2015... total exports of goods and services were $67.5 billion, while total imports were $65.1 billion. More>>

ALSO:

Approval: Air New Zealand And Air China Launch New Alliance Route

Air New Zealand and Air China have today launched joint sales for a new daily direct service between Auckland and Beijing after receiving approval from New Zealand Minister of Transport Hon Simon Bridges to form a strategic alliance. More>>

ALSO:

Money Trading: FX Trader Jin Yuan Finance Warned Over Lack Of Monitoring

Jin Yuan Finance, an Auckland-based foreign exchange trader, has been warned over its lack of anti-money laundering processes in place in the first public notification by the Department of Internal Affairs. More>>

ALSO:

Auckland Surge, Possible Peak: House Values Accelerate At Fastest Annual Pace In 8 Years

New Zealand residential property values rose at their fastest annual pace in eight years in August, pushed higher by overflowing demand in Auckland, which is showing signs speculators think it has reached its peak, according to Quotable Value. More>>

ALSO:

Cash Money: Reserve Bank Launches New $5 And $10 Banknotes

The $5 and $10 final banknotes were revealed at an event at the Bank in Wellington, and will start to be released from mid-October 2015. More>>

ALSO:

Truck Sales Booted: Commerce Commission Files Charges Against Mobile Trader

The Commerce Commission has filed charges against a mobile trader, or truck shop operator, claiming he obtained money from customers by deception and never intended to supply them with the goods they paid for. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news