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


NZ dollar gains as Chinese trade data beats estimates

NZ dollar gains as Chinese trade data beats estimates, Yellen fails to scare markets

By Jonathan Underhill

Feb. 12 (BusinessDesk) - The New Zealand dollar rose along with its Australian counterpart after trade figures from China beat estimates, stoking optimism that demand in the two nations’ biggest market isn’t wavering.

The kiwi rose to 83.50 US cents from 83.28 US cents at the start of the day and from 83.00 cents yesterday. The trade-weighted index rose to 78.51 from 78.41 at 8am and 78.08 yesterday.

China’s exports rose 10.6 percent in January from a year earlier while imports rose 10 percent, for a trade surplus of US$31.9 billion, the biggest for that month since 2009. China, the world’s second-largest economy, is the biggest buyer of New Zealand’s dairy products and wood and the largest market for Australia’s mineral resources.

“More of our milk powder and other things are going to China and better trading there is better for us,” said Imre Speizer, senior market strategist at Westpac Banking Corp. “It’s good for the currency.”

The kiwi dollar gained early in the day and stocks rose on Wall Street after new Federal Reserve chair Janet Yellen signalled no change to the Fed's policy path in her testimony to Congress. The fed’s massive stimulus programme would be wound back in “measured steps”, she said. The recovery in the US jobs market was “far from complete.”

“She sprung no real surprises,” Imre said. “She’s an extension of what we’ve had over the last few years with Bernanke. Equity markets probably rallied more on her consistency than anything else.”

The currency didn’t move much after New Zealand figures showed kiwis spent less on their credit and debit cards in January, snapping three months of gains, with apparel showing the sharpest decline.

The New Zealand dollar was little changed at 92.13 Australian cents from 92.09 cents yesterday. It traded at 50.71 British pence from 50.54 pence yesterday and rose to 61.20 euro cents from 60.73 cents. The kiwi climbed to 85.50 yen from 84.78 yen.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Banks: Westpac Keeps Core Government Transactions Contract

The local arm of Westpac Banking Corp has kept its contract with the New Zealand government to provide core transactions, but will have to share peripheral services with its rivals. More>>


Science Investment Plan: Universities Welcome Statement

Universities New Zealand has welcomed the National Statement of Science Investment released by the Government today... this is a critical document as it sets out the Government’s ten-year strategic direction that will guide future investment in New Zealand’s science system. More>>


Scouring: Cavalier Merger Would Extract 'Monopoly Rents' - Godfrey Hirst

A merger of Cavalier Wool Holdings and New Zealand Wool Services International's two wool scouring operations would create a monopoly, says carpet maker Godfrey Hirst. The Commerce Commission on Friday released its second draft determination on the merger, maintaining its view that the public benefits would outweigh the loss of competition. More>>


Scoop Review Of Books: She Means Business

As Foreman says in her conclusion, this is a business book. It opens with a brief biographical section followed by a collection of interesting tips for entrepreneurs... More>>


Hourly Wage Gap Grows: Gender Pay Gap Still Fixed At Fourteen Percent

“The totally unchanged pay gap is a slap in the face for women, families and the economy,” says Coalition spokesperson, Angela McLeod. Even worse, Māori and Pacific women face an outrageous pay gap of 28% and 33% when compared with the pay packets of Pākehā men. More>>


Housing: English On Housing Affordability And The Economy

"Long lead times in the planning process tend to drive prices higher in the upswing of the housing cycle. And those lead times increase the risk that eight years later, when additional supply arrives, the demand shock that spurred the additional supply has reversed. The resulting excess supply could produce a price crash..." More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news