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

 


NZ dollar drops after weak Chinese manufacturing figures

NZ dollar drops after weak Chinese manufacturing figures, hawkish Fed minutes

By Paul McBeth

Feb. 20 (BusinessDesk) - The New Zealand dollar dropped in local trading after weaker-than expected Chinese manufacturing figures raised concern about the strength of the regional economy, and after minutes to the Federal Reserve’s last policy meeting were more hawkish than some in the market were thinking.

The kiwi dropped to 82.54 US cents at 5pm in Wellington from 83.02 cents at 8am and 82.99 cents yesterday. The trade-weighted index fell to 77.53 from 77.83 yesterday.

The HSBC purchasing managers’ index showed a preliminary reading of 48.3 in February, below market expectations, and indicating Chinese manufacturing shrank in the month. The slowdown in Chinese manufacturing comes at the same time the world’s second biggest economy financial system contends with heightened risks to its financial system.

The Chinese data followed the Fed minutes earlier today, which underpinned strength in the greenback by scotching speculation the US central bank was considering slowing down its pace of printing new money.

“First we had the US dollar strengthen after the Fed minutes this morning, then we got the second wind when the HSBI preliminary PMI was exceptionally weak for China,” said Stuart Ive, senior client adviser at OMF in Wellington. “The kiwi is towards the midpoint against the US dollar, and if we cross over that and went lower, that starts to open up doors to push to a lower number.”

Manufacturing figures in the US and Europe during Northern Hemisphere trading will be watched for any signs of a global slowdown in industrial production, which would sap investors’ appetite for risk-sensitive assets, Ive said.

“One has to think we may see a weaker kiwi in the coming week,” he said.

Government data today showed New Zealand producer prices fell in the fourth quarter as weak demand for power led to lower electricity prices, while a Roy Morgan-ANZ survey showed consumer confidence slipped from a seven-year high as inflation expectations firmed.

The local currency fell to 84.16 yen at 5pm in Wellington from 84.79 yen yesterday, and increased to 92.28 Australian cents from 92.11 cents. It declined to 60.01 euro cents from 60.31 cents yesterday, and slipped to 49.50 British pence from 49.75 pence.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Media: Julian Wilcox Leaves Māori TV

Māori Television has confirmed the resignation of Head of News and Production Julian Wilcox. Mr Maxwell acknowledged Mr Wilcox’s significant contribution to Māori Television since joining the organisation in 2004. More>>

ALSO:

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news