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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Internet: NZ Govt Lifts Target Speeds For Rural Broadband

The government has lifted its expectations on faster broadband speeds for rural New Zealand as it targets increased spending on research and development in the country's information and communications technology sector, which it sees as a key driver for export growth. More>>


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>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news