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

 

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:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

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