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

 

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news