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

 


NZ dollar touches 2-month high, approaches 87.50 US cents

NZ dollar touches 2-month high, approaches 87.50 US cents, after Chinese PMI

By Tina Morrison

June 24 (BusinessDesk) - The New Zealand dollar touched a two-month high overnight, approaching 87.50 US cents, after a measure of Chinese manufacturing was stronger than expected, boosting sentiment about Asia's largest economy.

The kiwi touched 87.48 US cents overnight, its highest level since May 6 when it reached 87.79 cents, the highest in more than two-and-a-half years. The local currency was trading at 87.12 US cents at 8am in Wellington, from 87.32 cents at 5pm yesterday. The trade-weighted index slipped to 81.01 from 81.16 yesterday.

HSBC's monthly survey of purchasing managers released yesterday signalled the first expansion in six months in China's manufacturing sector. The index rose to 50.8 in a scale where a reading above 50 indicates expansion, exceeding forecasts for 49.7 and ahead of 49.4 last month. China is New Zealand's biggest trading partner, and kiwi businesses exported $11.4 billion of goods in the year through April.

"The kiwi rose to a fresh two-month high mainly because of the strong China manufacturing PMI result yesterday," said Imre Speizer, senior market strategist at Westpac Banking Corp. "We and Australia have close trade ties to China. A stronger economy there means they buy more of our dairy products etc."

The New Zealand dollar slipped later in the evening after European Central Bank president Mario Draghi told Dutch newspaper Telegraaf that stimulus would continue until at least the end of 2016, implying no interest rate rises before then. The resulting decline in European bond yields affected yields in other markets and weakened the kiwi, Speizer said.

"Despite the fall during the evening, I think the early push higher yesterday will resonate more strongly," said Speizer. He expects the kiwi to creep back up towards 87.50 US cents today, with the potential to break through that level in coming days.

Reserve Bank deputy governor Geoff Bascand spoke to the New Zealand Institute of Chartered Accountants’ workshop in Wellington this morning about risk management.

Tonight, the US has reports on house prices, consumer confidence, Richmond manufacturing and new home sales.

The New Zealand dollar was little changed at 92.47 Australian cents from 92.50 cents yesterday.

The kiwi weakened to 64.02 euro cents from 64.17 cents yesterday, edged lower to 51.14 British pence from 51.24 pence and slid to 88.73 yen from 89.01 yen.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Fruit & Veg Crackdown: Auckland Fruit Fly Find Under Investigation

The Ministry for Primary Industries (MPI) is investigating a find of a single male Queensland fruit fly in a surveillance trap in the Auckland suburb of Grey Lynn... MPI has placed legal controls on the movement of fruit and some vegetables outside of a defined circular area which extends 1.5km from where the fly was trapped in Grey Lynn. More>>

ALSO:

Scoop Business: Westpac NZ Reaches $2.97M Swaps Settlement

Westpac Banking Corp’s New Zealand unit has agreed to pay $2.97 million in a settlement with the Commerce Commission over the way the bank sold interest rate swaps to farmers between 2005 and 2012. More>>

ALSO:

Going Dutch: Fonterra Kicks Off $144M Partnership With Dutch Cheese Maker

Fonterra Co-operative Group, the world’s largest dairy exporter, has commissioned a new dairy ingredients plant in Heerenveen, in the north of the Netherlands, its first wholly-owned and operated ingredients plant in Europe. More>>

ALSO:

Scoop Business: NZ Retail Sales Beat Estimates

New Zealand retail sales rose more than expected in the fourth quarter, led by vehicle-related transactions, food and beverages, adding to evidence that cheap credit and a growing jobs market are encouraging consumers to spend. More>>

ALSO:

Delivery Cuts Go Ahead: 'Government Money Grab' From NZ Post

"It's a money grab by the Government as the shareholder of New Zealand Post" says Postal Workers Union advocate Graeme Clarke about the changes announced by NZ Post. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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