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

 

Media: Julian Wilcox Leaves Māori TV

Māori Television has confirmed the resignation of Head of News and Production Julian Wilcox. Mr Maxwell acknowledged Mr Wilcox’s significant contribution to Māori Television since joining the organisation in 2004. More>>

ALSO:

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Auckland Outage: Power Mostly Restored Overnight

Vector wishes to advise that all but 324 customers have been restored overnight. These customers are spread throughout the network in small pockets. The main St Johns feeder was restored around midnight allowing most of the customers in all affected areas to have power this morning. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news