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

 


NZ dollar little changed as local rates attract investors

NZ dollar little changed as local rates attract investors, outshine weak Chinese manufacturing

By Paul McBeth

March 24 (BusinessDesk) - The New Zealand dollar was little changed as the relative attraction of rising interest rates outshone weak Chinese manufacturing figures.

The kiwi traded at 85.35 US cents at 5pm in Wellington from 85.40 cents at 8am and 85.32 cents on Friday in New York. The trade-weighted index was 79.94 from 79.91 last week.

The HSBC flash China manufacturing purchasing managers’ index was below expectations at 48.1 this month from a final reading of 48.5 in February, signalling a third month of contracting industrial production in the world’s second-biggest economy. The weak data sparked a short-lived sell-off in the New Zealand dollar, before support from investors keen on the local economic story and rising interest rates weighed in.

New Zealand’s Reserve Bank embarked on a tightening cycle this month, raising the official cash rate 25 basis points to 2.75 percent, and traders have priced in a 94 percent chance of another increase next month, according to the Overnight Index Swap curve.

“They’re most likely going to be raising rates another 25 basis points and that makes the kiwi look relatively attractive,” said Michael Johnston, senior trader at HiFX in Auckland. “The kiwi and Aussie seem to be attracting a bit of interest on dips that don’t last that long.”

Johnston said the biggest risk to the currency this week will come from any heightened tensions in Crimea, due to a light flow of data.

A BusinessDesk survey of nine traders and strategists predicts the local currency may trade between 84 US cents and 87 cents this week, from 85.40 cents at 8am. Three expect the currency to remain relatively unchanged, four expect it to gain and two say it could fall.

The local currency was little changed at 93.98 Australian cents at 5pm in Wellington 93.90 cents on Friday in New York, and increased to 87.74 yen from 87.23 yen. It was little changed at 61.83 euro cents from 61.86 cents last week, and traded at 51.76 British pence from 51.74 pence.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

R18: The Warehouse Group Praised For Removing Games

The decision by New Zealand’s largest retailer The Warehouse Group (TW Group), to withdraw stocks of the latest version of Grand Theft Auto V (GTA V) and other R18 games, has been praised by advocacy group Stop Demand Foundation. More>>

ALSO:

Air NZ Wine Awards: Victory For Villa Maria As Pinot Noir Thrills

It was a night to remember as Villa Maria Estate picked up one of the highest accolades of the evening, the O-I New Zealand Reserve Wine of the Show Trophy, at the 28th Air New Zealand Wine Awards. The Villa Maria Single Vineyard Southern Clays Marlborough ... More>>

ALSO:

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Commerce: Supermarket Inquiry Finds No Breaches By Countdown

The Commerce Commission inquiry into anti-competitive behaviour by Countdown supermarkets, alleged by former Labour Party MP Shane Jones, has found nothing to warrant prosecution, although it warns supermarkets to take care in the way they communicate... More>>

ALSO:

Crown Accounts: English Flags ‘Challenge’ To Budget Surplus

Finance Minister Bill English is warning next month’s half yearly fiscal and economic update from the Treasury may not forecast a budget surplus, saying that returning the government’s accounts to surplus in 2015 will be “a challenge”, given the decline in commodity prices and weak global inflation. More>>

ALSO:

March 2015: Netflix To Launch In Australia And New Zealand

World’s Leading Internet Television Network to Offer Original Series, Movies, Documentaries, Stand-Up Comedy Specials and TV Shows for Low Monthly Price More>>

ALSO:

Price Of Cheese (Is Up): Dairy Product Prices Fall To Five-Year Low

Dairy product prices fell in the latest GlobalDairyTrade auction to the lowest level in more than five years, led by declines in rennet casein and skim milk powder. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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