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

 


NZ dollar weakens after Chinese data shows property slowdown

NZ dollar weakens after Chinese data shows slowdown in property market

By Tina Morrison

May 19 (BusinessDesk) – The New Zealand dollar weakened after Chinese data at the weekend signalled a slowdown in the property market of Asia’s largest economy.

The kiwi was at 86.27 US cents at 8am in Wellington, from 86.21 cents at the New York close and 86.42 cents at 5pm in Wellington on Friday. The trade-weighted index slipped to 80.21 from 80.32 on Friday.

China, Australia and New Zealand’s largest trading partner, released a report at the weekend showing new home prices in April rose in the fewest cities for 18 months even as developers offered deep discounts and some local governments eased property curbs. Concern about the effects of a deflating property bubble in China may weigh on the kiwi and Aussie today, strategists said.

“A property slowdown has long been desired by the authorities, but there is a risk this train could overrun the station, “ANZ Bank New Zealand senior economist Sharon Zollner and senior foreign exchange strategist Sam Tuck said in a note.

“The New Zealand forestry industry is directly exposed to a slowdown in China construction, but the most important channels for a broader impact on New Zealand could be headlines about any resulting financial sector woes hitting the New Zealand dollar and commodity prices as China’s near-term growth prospects are reassessed.”

ANZ expects the kiwi to trade between 86.10 US cents and 86.80 cents today.

At 10:30am traders will be eyeing the BNZ-BusinessNZ PSI monthly survey of the services sector for April while at 10:45am the Statistics department publishes the first quarter producers price index.

The New Zealand dollar slipped to 92.08 Australian cents, from 92.34 cents on Friday. The slowdown in the Chinese property market and a drop in iron ore prices may weigh on the Aussie today, Kymberly Martin, senior market strategist at Bank of New Zealand, said in a note.

The kiwi was little changed at 63.01 euro cents from 62.99 cents on Friday, slipped to 51.30 British pence from 51.44 pence and weakened to 87.63 yen from 87.70 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

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