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

 

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Scoop Business: NZ-Korea FTA Signed Amid Spying, Lost Sovereignty Claims

A long-awaited free trade agreement between New Zealand and South Korea has been signed in Seoul by Prime Minister John Key and the Korean president, Park Geun-hye. More>>

ALSO:

PM Visit: NZ And Viet Nam Agree Ambitious Trade Target

New Zealand and Viet Nam have agreed an ambitious target of doubling two-way goods and service trade to around $2.2 billion by 2020, Prime Minister John Key has announced. More>>

ALSO:

Scoop Business: NZ Economy Grows 0.8% In Fourth Quarter

The New Zealand economy expanded in the fourth quarter as tourists drove growth in retailing and accommodation, and property sales increased demand for real estate services. More>>

ALSO:

Scoop Business: RBNZ’s Wheeler Keeps OCR On Hold, No Rate Hikes Ahead

The Reserve Bank has removed the prospect of future interest rate hikes from its forecast horizon as a strong kiwi dollar and cheap oil hold down inflation, and the central bank ponders whether to lower its assessment of where “neutral” interest rates should be. The kiwi dollar gained. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news