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

 

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>

BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>


BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Housing: More House Price Gains Expected

House price expectations remain high, with a net 56% of respondents expecting house prices will increase. Fears of higher interest rates are fading, consistent with the RBNZ’s signals this year. Affordability and a lack of houses for ... More>>

TDDA: State-Of-The-Art Drug Testing Laboratory To Open In Auckland

World leading drug testing agencies, The Drug Detection Agency (TDDA) and Omega Laboratories, open New Zealand laboratory More>>

Network: Bigpipe Launches Ultra-Fast Broadband Into Wellington

Bigpipe Launches Ultra-Fast Broadband into Wellington Naked broadband provider Bigpipe has extended its national reach, announcing today, the launch of its unlimited UFB offering into Wellington. The Spark Venture business is giving Wellingtonians the ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news