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

 


NZ dollar little changed, may fall on drop in China imports

NZ dollar little changed, may fall on drop in Chinese imports

By Tina Morrison

June 9 (BusinessDesk) - The New Zealand dollar was little changed this morning on low liquidity as Australian markets are closed for a public holiday. The currency may decline later in the day following a report that Chinese imports unexpectedly dropped in May.

The kiwi was trading at 84.89 US cents at 8am in Wellington from 85.01 cents at the New York close and 84.86 cents in Wellington on Friday. The trade-weighted index was little changed at 79.18 from 79.11 on Friday.

A customs report at the weekend showed that while Chinese exports rose a more-than-expected 7 percent in May from the year earlier, imports unexpectedly slumped 1.6 percent. The drop wasn't forecast by any of the 42 economists in a Bloomberg News survey that had a median projection for a 6 percent gain. China is the largest trading partner for New Zealand and Australia and the drop may weigh on the Australasian currencies.

"They are not importing as much, so it can be taken as a negative for the kiwi and the Aussie," said Martin Rudings, senior adviser at OMF. "Although the market is not racing out and selling at these levels, I think we will slowly drift down."

Rudings said the kiwi faced resistance around the 85-85.20 US cent level.

Underpinning the US dollar, a report on Friday showed US employers added 217,000 non-farm payrolls in May, close to expectations and reinforcing the economy is back on track following weather related weakness earlier in the year.

"I am looking for a stronger US dollar going forward and a weaker local currency," said OMF's Rudings. "These are good levels to sell."

Today, data will be released on New Zealand's first quarter wholesale trade.

The New Zealand dollar was little changed at 90.90 Australian cents from 90.95 cents on Friday. Australian banks are closed for the Queens Birthday public holiday.

The local currency was little changed at 62.21 euro cents from 62.14 cents on Friday and at 50.49 British pence from 50.48 pence. The kiwi edged up 86.97 yen from 86.83 yen on Friday ahead of Japanese reports on balance of payments, consumer confidence and the final reading of first quarter GDP.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Scoop Business: ComCom Charges Hawkins’ Finance Companies Over Debt Recovery

The Commerce Commission has filed criminal proceedings against two finance companies run by former 1980s high-flyer Allan Hawkins over their debt recovery practices. More>>

ALSO:

Science Media Centre: The Big Science Stories Of 2014

It was a dramatic year for science, one that witnessed a severe outbreak of Ebola in West Africa and an historic mission to land a space probe on a comet. On the home front... headlines with animal testing for 'legal highs', 1080 use to tackle increased pest numbers and court action over genetically modified organisms among the most-covered stories. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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