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.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Tourism: China Southern Airlines To Fly To Christchurch

China Southern Airlines, in partnership with Christchurch Airport and the South Island tourism industry, has announced today it will begin flying directly between Guangzhou, Mainland China and the South Island. More>>

ALSO:

Dodgy: Truck Shops Come Under Scrutiny

Mobile traders, or truck shops, target poorer communities, particularly in Auckland, with non-compliant contracts, steep prices and often lower-quality goods than can be bought at ordinary shops, a Commerce Commission investigation has found. More>>

ALSO:

Auckland Transport: Government, Council Agree On Funding Approach

The government and Auckland Council have reached a detente over transport funding, establishing a one-year, collaborative timetable for decisions on funding for the city's transport infrastructure growth in the next 30 years after the government refused to fund the $2 billion of short and medium-term plans outlined in Auckland's draft Unitary Plan. More>>

ALSO:

Bullish On China Shock: Slumping Equities, Commodities May Continue, But Not A GFC

The biggest selloff in stock markets in at least four years, slumping commodity prices and a surge in Wall Street's fear gauge don't mean the world economy is heading for another global financial crisis, fund managers say. More>>

ALSO:

Real Estate: Investors Driving Up Auckland Housing Risk - RBNZ

The growing presence of investors in Auckland's property market is increasing the risks, and is likely to both amplify the housing cycle and worsen the potential damage from a downturn both to the financial system and the broader economy, said Reserve Bank deputy governor Grant Spencer. More>>

ALSO:

Annual Record: Overseas Visitors Hit 3 Million Milestone

Visitor arrivals to New Zealand surpassed 3 million for the first time in the July 2015 year, Statistics New Zealand said today. The record-breaking 3,002,982 visitors this year was 7 percent higher than the July 2014 year. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news