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

 


NZ dollar gains after Chinese PMI beats expectations

NZ dollar gains after Chinese manufacturing beats expectations

By Suze Metherell

June 23 (BusinessDesk) - The New Zealand dollar rose after Chinese data showed its manufacturing sector was in expansion for the first time in six months.

The local currency advanced to 87.32 US cents at 5pm in Wellington, from 86.93 cents at 8am and 86.96 cents at the New York close last week. The trade-weighted index rose to 81.16 from 81 this morning.

The HSBC China flash purchasing manager's index (PMI) for June rose to 50.8, in a scale where a reading above 50 indicates expansion. June's reading was up from 49.4 last month and exceeded the forecast of 49.7. China is New Zealand's biggest trading partner, and kiwi businesses exported $11.4 billion of goods in the year ended April 30.

"The manufacturing data out of China has really given us another boost to the upside as world growth comes into focus at the beginning of this week," said Stuart Ive, senior dealer at OMF. "The Chinese data is the best in six months and it does play out that commodity currencies will get a boost from it."

The local currency may trade between 85 US cents and 88.20 cents this week, according to a BusinessDesk survey of 10 traders and strategists, who are split on the kiwi's trajectory this week. Four expect it to decline, three predict it will gain and three pick it to remain largely unchanged.

"I think it isn't going to race away one way or the other but it is broadly supported though and I do think it'll edge towards those resistance levels, (87.80) as we progress throughout the week," OMF's Ive said.

Overnight traders will be watching for European and US manufacturing data to confirm global economic growth, he said.

The local currency weakened to 92.50 Australian cents, from 92.63 at 8am and 92.60 cents last week. The kiwi rose to 89.01 yen, from 88.74 yen this morning and 88.75 yen at the New York close. It gained to 51.24 British pence, from 51.07 pence at 8am and 51.11 pence on Friday. The New Zealand dollar increased to 64.17 euro cents, from 63.97 cents this morning and 63.94 at the New York close.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Wheeler Downplays Scope For ‘Large’ Rates Fall

Reserve Bank governor Graeme Wheeler says some market commentators are predicting further declines in interest rates that would only make sense for an economy in recession, although some easing is likely to be needed to maintain New Zealand’s economic growth. More>>

ALSO:

Ruataniwha Dam: Consent Conditions Could Mean Reduced Intensity

Legal advice sought by the Hawke’s Bay Regional Council on the Ruataniwha Dam consent conditions has confirmed that farmers who sign up to take water from the dam could be required to reduce the intensity of their farming operation to meet the catchment’s strict nitrogen limit. More>>

Health And Safety: Bill Now Sees Rules Relaxed For Small Businesses

Health and safety law reform sparked by the Pike River coalmine disaster has been reported back from the industrial relations select committee with weakened requirements on small businesses to appoint health and safety representatives and committees. More>>

ALSO:

Bearing Fruit: Annual Fruit Exports Hit $2 Billion For First Time

The value of fruit exported rose 20 percent (up $330 million) for the June 2015 year when compared with the year ended June 2014. Both higher prices and a greater quantity of exports (up 9.0 percent) contributed to the overall rise. More>>

ALSO:

Interest Rates: NZ Dollar Jumps After RBNZ Trims OCR

The New Zealand dollar jumped more than half a US cent after Reserve Bank governor Graeme Wheeler cut the official cash rate by a quarter-point and said the currency needs to be lower, while dropping a reference to criteria that justified intervention. More>>

ALSO:

Drones: New 'World-Class' Framework For UAVs

The rules, which come into effect on 1 August, recognise the changing environment and create a world-class framework that accommodates ongoing development while still ensuring the safety of the public, property and other airspace users. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news