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

 

Insurers Up For More Payouts: Chch Property Investor Wins Policy Appeal In Supreme Court

Ridgecrest NZ, a property investor, has won an appeal in the Supreme Court over insurance cover provided by IAG New Zealand for a Christchurch building damaged in four successive earthquakes. More>>

ALSO:

Other Cases:

Royal Society: Review Finds Community Water Fluoridation Safe And Effective

A review of the scientific evidence for and against the efficacy and safety of fluoridation of public water supplies has found that the levels of fluoridation used in New Zealand create no health risks and provide protection against tooth decay. More>>

ALSO:

Scoop Business: Croxley Calls Time On NZ Production In Face Of Cheap Imports

Croxley Stationery, whose stationery brands include Olympic, Warwick and Collins, plans to cease manufacturing in New Zealand because it has struggled to compete with lower-cost imports in a market where the printed word is giving way to electronic communications. More>>

ALSO:

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Igniting The Spark: Bringing The Digital Enabler To Life

Changing a name is, relatively speaking, the easy part of a re-invention. Changing a culture, getting all the ducks in a row, turning yourself inside-out to become customer-inspired is a much bigger challenge. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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