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

 


NZ dollar weakens ahead of Chinese data which may be weaker

NZ dollar weakens ahead of Chinese data which may show slowing economic growth

By Tina Morrison

April 16 (BusinessDesk) – The New Zealand dollar weakened ahead of the release of Chinese data today which is expected to show a slowdown in Asia’s largest economy, the country’s largest trading partner. Locally, figures are expected to show inflation is accelerating.

The kiwi softened to 86.39 US cents at 8am in Wellington from 86.50 cents at 5pm yesterday. The trade-weighted index edged lower to 80.22 from 80.27 yesterday.

Investors were nonplussed by the two main events overnight, a speech by the new Federal Reserve Chair Janet Yellen which elicited no new information, and a forecast decline in global dairy prices. Today, the focus is on a slew of data releases from China with some investors anticipating Chinese gross domestic product to soften more than economists expect.

“The potential big events turned out to be neutral and that’s why nothing really moved significantly last night,” said Imre Speizer, senior market strategist at Westpac Banking Corp. in New Zealand. “The market is looking ahead to today’s Chinese data. That’s going to be the big event of today. It’s rumoured to be weaker than the consensus estimate.”

Economists expect the Chinese economy expanded at a 7.3 percent annual pace in the first quarter, the slowest pace in five years and down from a previous rate of 7.7 percent. China also publishes March data on retail sales, industrial production and fixed asset investment, all scheduled for release at 2pm New Zealand time.

“G10 FX will be at the mercy of Chinese data, particularly over the next 24 hours,” Kathy Lien, managing director of foreign exchange strategy at BK Asset Management, said in a note. “The pace of Chinese growth will not only affect commodity currencies but could also have a significant impact on overall risk appetite and in turn other major currencies such as the dollar, euro and British pound.”

The prospect of slower Chinese growth also weighed on the Australian dollar overnight. China is Australia’s largest trading partner and the Aussie is considered a proxy for the Chinese currency.

The New Zealand dollar gained to 92.31 Australian cents from 92.10 cents yesterday.

In New Zealand today, the focus is on first quarter inflation figures scheduled for release at 10:45am. Economists are expecting a 0.5 percent rise in the quarter and it would take a surprise of 20 basis points to impact the currency, said Westpac’s Speizer.

The kiwi slipped to 51.66 British pence from 51.74 pence yesterday, dropped to 62.55 euro cents from 62.60 cents and weakened to 87.98 yen from 88.15 yen.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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