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

 

NZ dollar gains against Aussie as investors fret

NZ dollar gains against Aussie as investors fret about trade war impact

By Rebecca Howard

April 5 (BusinessDesk) - The New Zealand dollar rose against the Australian dollar as investors shrugged off better data across the Tasman and remained jittery about the potential impact of a global trade war. Concerns did ease slightly in Asian trading on signs the US is willing to negotiate.

The New Zealand dollar traded at 94.77 Australian cents from 94.68 Australian cents as at 8am and from 94.55 cents late yesterday. It traded at 72.92 US cents as at 5pm in Wellington from 73.04 US cents as at 8am and 72.84 cents late yesterday.

Global markets have been volatile after tit-for-tat tariffs announced by China and the US and while some of those concerns eased after the US expressed a willingness to negotiate, the sentiment is still fragile. According to Reuters, Trump’s top economic adviser, Larry Kudlow, when asked whether the latest U.S. tariffs plan may never go into effect and may be a negotiating tactic, told reporters: “Yes, it’s possible. It’s part of the process.” He called the announcements by the two countries mere opening proposals.

The kiwi benefited as the Aussie remained under pressure.

"We saw better-than-expected retail sales numbers out of Australian yesterday and better trade numbers today and in normal market conditions, you would expect the Aussie to have a bit more strength than what we have seen," said Alex Hill, head of dealing at HiFX.

"What's going on with trade war talk and (US President Donald) Trump and China is weighing on the Aussie than the kiwi at the moment, with Australia's closer correlation to Chinese trade from a commodities perspective," said Hill.

"It's just not letting the Aussie push on as much as the kiwi is," he added. Positive local data, including yesterday's improving consumer confidence and bigger-than-expected budget surplus coupled with data today that point to rising property values have also helped underpin the kiwi.

The trade-weighted index rose to 74.97 from 74.85. The kiwi traded at 59.38 euro cents from 59.33 cents and gained to 77.96 yen from 77.61 yen. It rose to 4.5966 yuan from 4.5832 yuan and gained to 51.81 British pence from 51.71 pence.

New Zealand's two-year swap rate fell three basis points to 2.21 and 10-year swap rate was unchanged at 3.09 percent.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

NZ's Space Programme: Rocket Lab Launches NASA Satellites

On Sunday, December 16, 2018 UTC, Rocket Lab’s Electron launch vehicle successfully lifted off from Rocket Lab Launch Complex 1 on New Zealand’s Māhia Peninsula. More>>

ALSO:

Conservation Plan: Celebrity Kiwi Released Into The Wild

One of the nation's most famous kiwi was among four released onto Taranaki Maunga... Atara, a five-year-old male, hatched while David Attenborough's cameras were rolling. More>>

ALSO:

Budget Policy Statement: 'Wellbeing Of NZers At The Heart Of Budget Priorities'

“We want a wellbeing focus to drive the decisions we make about Government policies and Budget initiatives. This means looking beyond traditional measures - such as GDP - to a wider set of indicators of success,” Grant Robertson said. More>>

ALSO:

Short Of 2017 Record: Insurers Pay $226m Over Extreme Weather

Insurers have spent more than $226 million this year helping customers recover from extreme weather, according to data from the Insurance Council of NZ (ICNZ). More>>