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

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

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:

More:

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:

Get More From Scoop

 
 
Standards New Zealand

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