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

 


NZ dollar rises from three-week low after Chinese data

NZ dollar rises from three-week low after better-than-expected Chinese manufacturing data

By Paul McBeth

May. 22 (BusinessDesk) - The New Zealand dollar rose from a three-week low as better-than-expected Chinese manufacturing data lifted investors' confidence in the Australasian nations, which count the world's second-biggest economy as their biggest export market.

The kiwi rose to,85.80 US cents at 5pm in Wellington from 85.61 cents at 8am, and 85.55 cents yesterday. The trade-weighted index advanced to 79.99 from 79.71 yesterday.

The kiwi and the Australian dollar gained after the preliminary HSBC manufacturing purchasing managers' index, a gauge of Chinese manufacturing,,rose to 49.7, a five-month high. While the indicator shows the sector is still contracting, it was ahead of analysts' expectations for a print of 48.3, raising confidence the Chinese economy may avoid a sharper slowdown than initially feared.

Investors' appetite for riskier assets got a boost from minutes to the latest Federal Reserve policy meeting which said the US central bank didn't see inflation pressures which could warrant higher interest rates.

"China has obviously been a big concern for the market of late, and we saw quite decent improvement," said Sam Tuck, senior FX strategist at ANZ Bank New Zealand in Auckland. "Any good news in China is good news for us."

The kiwi will attract buyers between 85 US cents and 85.50 cents, ANZ's Tuck said. Traders will be watching manufacturing figures in the US and Europe to gauge output in those economies.

New Zealand business managers' expectations for inflation edged up a little in the Reserve Bank's survey, with firms seeing consumer prices rising 2.08 percent over the coming year and 2.36 percent in the next two, up from 2.03 percent and 2.33 percent respectively.

The kiwi was little changed at 50.80 British pence from 50.79 pence yesterday, after the pound rose to a five-and-a-half year high yesterday,when,government figures showed strong UK retail sales. The kiwi rose to 62.75 euro cents from 62.41 cents yesterday.

The local currency slipped to 92.51 Australian cents at 5pm in Wellington from 92.61 cents yesterday, and climbed to 87.28 yen from 86.53 yen.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Strike: Lyttelton Port Workers Vote To Escalate Dispute

Members of the Rail and Maritime Transport Union (RMTU) at Lyttelton Port today voted to escalate their industrial action. Around 200 RMTU members have been operating an overtime ban since 17 December and today they endorsed a series of full withdrawals of labour at the port. More>>

ALSO:

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

NASA, NOAA: Find 2014 Warmest Year In Modern Record

Since 1880, Earth’s average surface temperature has warmed by about 1.4 degrees Fahrenheit (0.8 degrees Celsius), a trend that is largely driven by the increase in carbon dioxide and other human emissions into the planet’s atmosphere. The majority of that warming has occurred in the past three decades. More>>

ALSO:

Scoop Business: New Zealand’s Reserve Bank Named Central Bank Of The Year

The Reserve Bank of New Zealand’s efforts to stifle house price inflation by using new policy tools has seen the institution named Central Bank of the year by Central Banking Publications, a publisher specialising in global central banking practice. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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