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

 


NZ dollar holds gains after flat Chinese manufacturing

NZ dollar holds gains after flat Chinese manufacturing, slow US growth

By Paul McBeth

May 1 (BusinessDesk) - The New Zealand dollar held gains in local trading as tepid Chinese manufacturing figures failed to dent support for a currency that had gained after figures showed slower than expected US economic growth in the first quarter.

The kiwi traded at 86.13 US cents at 5pm in Wellington from 86.21 cents at 8am, up from 85.63 cents yesterday. The trade-weighted index advanced to 80.01 from 79.68 yesterday.

China’s purchasing managers’ index was little changed at 50.3 in April, just below expectations, indicating a marginal expansion of industrial production in the world’s second biggest economy. Markets were muted in Asian trading with Singapore and China closed for the May Day holiday.

The kiwi was boosted by weaker growth in the US than expected. Annualised gross domestic product expanded 0.1 percent in the March quarter, short of the 1.2 percent forecast by economists. After the GDP numbers, the Federal Open Market Committee kept the key rate near zero, trimming its quantitative easing programme by US$10 billion to $45 billion as expected.

“That GDP figure looks very much distorted by winter,” said Stuart Ive, senior client adviser at OMF in Wellington. “If we see the growth picture improve globally, the kiwi will get bought.”

OMF’s Ive said investors’ appetite for risk-sensitive assets has also been lifted by calming tensions between Russia and the West over Ukraine.

“It looks like Ukraine is going to be more a slow grind than a big bang,” he said.

He predicts the currency will trade between 85.20 US cents and 86.30 cents.

Traders will be watching the US ISM manufacturing survey for more signs of life in the world’s biggest economy ahead of the Friday non-farm payrolls report. European markets will be closed on Thursday for the May Day holiday.

The kiwi gained to 88.06 yen at 5pm in Wellington from 87.65 yen yesterday, and rose to 92.67 Australian cents from 92.19 cents. It was little changed at 62.07 euro cents from 62.01 cents yesterday, and advanced to 51.02 British pence from 50.87 pence.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Finance: Major Campaign To End "Gross Overtaxation Of Savings"

The campaign – which includes a special web site through which New Zealanders can e-mail their own and other MPs and party leaders – is backed by Age Concern, Consumer NZ, the Financial Services Council and the Taxpayers’ Union. More>>

ALSO:

Scoop Business: Leighton-Led WGP To Build, Manage Transmission Gully

The Wellington Gateway Partnership, led by a unit of ASX-listed Leighton Holdings, has won the $1 billion contract to build the Transmission Gully road north of Wellington. More>>

ALSO:

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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