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

 

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Fruit & Veg Crackdown: Auckland Fruit Fly Find Under Investigation

The Ministry for Primary Industries (MPI) is investigating a find of a single male Queensland fruit fly in a surveillance trap in the Auckland suburb of Grey Lynn... MPI has placed legal controls on the movement of fruit and some vegetables outside of a defined circular area which extends 1.5km from where the fly was trapped in Grey Lynn. More>>

ALSO:

Scoop Business: Westpac NZ Reaches $2.97M Swaps Settlement

Westpac Banking Corp’s New Zealand unit has agreed to pay $2.97 million in a settlement with the Commerce Commission over the way the bank sold interest rate swaps to farmers between 2005 and 2012. More>>

ALSO:

Going Dutch: Fonterra Kicks Off $144M Partnership With Dutch Cheese Maker

Fonterra Co-operative Group, the world’s largest dairy exporter, has commissioned a new dairy ingredients plant in Heerenveen, in the north of the Netherlands, its first wholly-owned and operated ingredients plant in Europe. More>>

ALSO:

Scoop Business: NZ Retail Sales Beat Estimates

New Zealand retail sales rose more than expected in the fourth quarter, led by vehicle-related transactions, food and beverages, adding to evidence that cheap credit and a growing jobs market are encouraging consumers to spend. More>>

ALSO:

Delivery Cuts Go Ahead: 'Government Money Grab' From NZ Post

"It's a money grab by the Government as the shareholder of New Zealand Post" says Postal Workers Union advocate Graeme Clarke about the changes announced by NZ Post. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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