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

 


NZ dollar little changed amid concerns on global growth

NZ dollar little changed as manufacturing reports raise concerns about global growth

By Tina Morrison

March 25 (BusinessDesk) – The New Zealand dollar was little changed as manufacturing reports from major overseas economies raised concerns about global growth.

The kiwi edged up to 85.39 US cents at 8am in Wellington, from 85.37 cents at 5pm yesterday. The trade-weighted index weakened to 79.79 from 79.95 yesterday.

Reports for March manufacturing in China, the US and Germany over the past 24 hours failed to meet expectations. That’s in contrast with New Zealand, where a report on fourth quarter gross domestic product printed in line with forecasts last week as the nation’s central bank raised the benchmark interest rate on concern about rising inflation.

“The China HSBC PMI, German PMI and the US Markit PMI were all weaker than expectations, delaying the view for recovery,” ANZ Bank senior economist Mark Smith and senior FX strategist Sam Tuck said in a note. “Domestic factors ensure NZD/USD will remain strong on slow global growth.”

Yesterday, China’s flash Markit/HSBC Purchasing Managers’ index fell to an eight-month low of 48.1 in March, from 48.5 in February and expectations of 48.7. The index has remained below 50 this year, indicating a contraction in the sector.

Separately, the preliminary Markit US PMI manufacturing report slipped to 55.5 in March from 57.1 in February and expectations of 56.5.

Meantime, while Eurozone manufacturing PMI eased only slightly to 53 from 53.2, the German reading dropped to 53.8 from 54.8 in February and expectations of 54.5, raising concerns about the region’s largest economy.

Tonight, the German IFO business confidence survey for March will be closely watched.

Also underpinning the New Zealand dollar against the US currency overnight, San Francisco Federal Reserve president John Williams suggested in an interview with the Washington Post that financial markets were wrong to interpret that the Federal Reserve would tighten monetary policy sooner than previously expected.

Today, traders will be eyeing a speech in Hong Kong by Reserve Bank of Australia deputy governor Philip Lowe titled ‘Opportunities and Challenges for Market-based Financing’.

With the Australian currency at elevated levels, the central bank may be tempted to talk it lower, Bank of New Zealand currency strategist Raiko Shareef said in a note.

The New Zealand dollar touched a two-week low of 93.45 Australian cents, and was trading at 93.50 cents at 8am in Wellington from 93.97 cents at 5pm yesterday.

Traders have increased their bets that the Reserve Bank of Australia will raise interest rates in the coming year, with the Overnight Swap Curve showing expectations for 16 basis points of hikes in the next 12 months, compared with expectations of 3 basis points of cuts at the start of the month.

The kiwi slipped to 87.28 yen from 87.43 yen, weakened to 61.70 euro cents from 61.84 cents and was unchanged at 51.76 British pence.

Reports on UK February inflation and US consumer confidence for March are scheduled for publication later today.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Half Full: Fonterra Raises Forecast Milk Price

Fonterra Co-operative Group Limited today increased its 2016/17 forecast Farmgate Milk Price by 50 cents to $4.75 per kgMS. When combined with the forecast earnings per share range for the 2017 financial year of 50 to 60 cents, the total payout available to farmers in the current season is forecast to be $5.25 to $5.35 before retentions. More>>

ALSO:

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Reserve Bank: Labour Calls For Monetary Policy To Expand Goals

Labour's comments follow a speech today by RBNZ governor Graeme Wheeler in which Wheeler sought to answer critics who variously say he should stop lowering interest rates, lower them faster, or that inflation-targeting should no longer be the primary goal of the central bank's activities. More>>

ALSO:

BSA Extension And Sunday Morning Ads: Digital Convergence Bill Captures Online Content

Broadcasting Minister Amy Adams has today announced the Government’s plans to update the Broadcasting Act to better reflect today’s converged market... The Government considered four areas as part of its review into content regulation: classification requirements, advertising restrictions, election programming and contestable funding. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news