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

 


NZ dollar little changed as traders await Chinese flash PMI

NZ dollar little changed as traders await key report on Chinese economy

By Tina Morrison

March 24 (BusinessDesk) – The New Zealand dollar is little changed ahead of a key report on the Chinese economy which is an indicator of gross domestic product.

The kiwi traded at 85.40 US cents from 85.32 cents at the New York close and 85.34 cents at 5pm in Wellington on Friday. The trade-weighted index edged up to 80.01 from 79.96 on Friday.

Investors today will be focused on China’s release of the HSBC flash manufacturing purchasing managers index for March as they try to gauge how Asia’s largest economy has fared in the first quarter. Economists expect the measure will remain in contraction but edge up to 48.7 in March, from a seven-month low of 48.5 in February. China is New Zealand and Australia’s largest trading partner.

“The key data event today will be the March China HSBC flash PMI,” Bank of New Zealand senior market strategist Kymberly Martin said in a note. “As markets are highly focused on China risk they will not be prepared to absorb any disappointment. A better-than-expected result would support both the New Zealand dollar and Australian dollar independently, but likely result in a weaker NZD/AUD.”

The New Zealand dollar slipped to 93.92 Australian cents at 8am from 94.15 cents on Friday.

The HSBC report, which comes ahead of an official PMI, is scheduled for release at 2:45pm New Zealand time. Chinese Premier Li Keqiang has said the economy faces “severe challenges” in 2014 although he has maintained the nation’s growth target of 7.5 percent for this year.

“The market is waiting to see how the authorities will choose to trade off their goals of strong economic growth on the one hand, and deflating a credit and housing bubble and liberalising the financial sector (in particular interest rates) on the other,” ANZ Bank New Zealand senior economist Sharon Zollner and senior FX strategist Sam Tuck said in a note.

The New Zealand dollar, which began direct trading with the Chinese currency within a set band last week, was at 5.316 yuan at 8am from 5.3119 yuan on Friday.

Later today, Europe’s flash PMIs and the US Markit PMI for March will also be released. European PMIs are expected to confirm a slow recovery while the US data is expected to remain solid at around 57, ANZ said.

The kiwi was little changed at 61.89 euro cents from 61.90 cents on Friday, 51.79 British pence from 51.68 pence and at 87.23 yen from 87.29 yen.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Real Estate: Housing Prices Head South In Most Of NZ

Housing became more affordable for first home buyers in many parts of the country including Auckland last month, as falling prices more than offset rising mortgage interest rates. More>>

ALSO:

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:

NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news