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

 


NZ dollar little changed after Chinese shares sink

NZ dollar little changed after Chinese shares sink; thin data pipeline

By Paul McBeth

Feb. 24 (BusinessDesk) - The New Zealand dollar was little changed after a slump on China’s stock market weighed on Australia’s currency and ahead of a light week for economic data releases.

The kiwi traded at 82.76 US cents at 5pm in Wellington from 82.80 cents at 8am and 82.79 cents on Friday in New York. The local currency was little changed at 92.30 Australian cents from 92.20 cents on Friday in New York.

China’s Shanghai Stock Exchange Composite index was down 2 percent in afternoon trading, as speculation reduced lending will sap growth in the world’s second biggest economy. The Australian dollar dropped after the decline, and was trading at 89.62 cents at 5pm in Wellington from 89.74 cents on Friday in New York, as investors mulled the impact on a softer Chinese economy on Australia’s imports.

The Australasian countries count China as their biggest export destination, and the trans-Tasman currencies are often used as a proxy by investors to get exposure to China.

“Chinese equity markets are down and there are a few jitters going on in China,” said Imre Speizer, market strategist at Westpac Banking Corp in Auckland.

Westpac’s Speizer said with little first-tier economic data scheduled for release this week, investors will be watching the general trend of lower level figures to firm up their views on the currency. He expects the kiwi will largely trade within recent ranges this week.

“I’m sitting on the fence – there’s nothing to indicate it will break outside last week’s range,” he said.

A BusinessDesk survey of 11 currency strategists and traders predicts the local currency may trade between 81.50 US cents and 84.20 cents this week. Four expect the kiwi to decline, five expect it will remain relatively neutral, and while two anticipates a gain.

The local currency was almost unchanged at 60.24 euro cents at 5pm in Wellington from 60.25 cents on Friday in New York, and edged down to 49.73 British pence from 49.82 pence. It fell to 84.62 yen from 84.88 yen last week. The trade-weighted index was 77.76 from 77.79 on Friday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

NASA, NOAA: Find 2014 Warmest Year In Modern Record

Since 1880, Earth’s average surface temperature has warmed by about 1.4 degrees Fahrenheit (0.8 degrees Celsius), a trend that is largely driven by the increase in carbon dioxide and other human emissions into the planet’s atmosphere. The majority of that warming has occurred in the past three decades. More>>

ALSO:

Scoop Business: New Zealand’s Reserve Bank Named Central Bank Of The Year

The Reserve Bank of New Zealand’s efforts to stifle house price inflation by using new policy tools has seen the institution named Central Bank of the year by Central Banking Publications, a publisher specialising in global central banking practice. More>>

ALSO:

Science Media Centre: Viral Science And Another 'Big Dry'?

"Potentially, if there is no significant rainfall for the next month or so, we could be heading into one of the worst nation-wide droughts we’ve seen for some time," warns NIWA principal climate scientist Dr Andrew Tait. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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