NZ dollar rises to 3-week high as President Xi speech awaited, trade war fears abate
By Jonathan Underhill
April 10 (BusinessDesk) - The New Zealand dollar rose, touching a three-week high overnight, as fears of a trade war between the US and China dissipated and as investors await a speech from Chinese president Xi Jinping that may include references to the standoff with the US.
The kiwi traded at 73.05 US cents as at 8am in Wellington, and rose as high as 73.23 cents, from 72.93 cents late yesterday. The trade-weighted index was at 75.09 from 75.04.
China has come into focus ahead of Xi's speech and after Bloomberg reported that the nation is considering a gradual depreciation of the yuan as it prepares to respond in its trade spat with the US. That comes after US officials including Treasury Secretary Steven Mnuchin tried to play down the threat of a trade war and amid reports that North Korean leader Kim Jong Un is prepared to discuss denuclearisation of the Korean Peninsula.
"Market sentiment began the week on a positive note, seeing a rebound in US equities, a nudge higher in UST yields and the NZD outperform, while the USD is weaker across the board," said Jason Wong, currency strategist at Bank of New Zealand, in a note. On Xi's speech, "the market will be taking a greater interest to see what he says about the US-China trade dispute."
The kiwi rose to 4.6047 yuan from 4.5939 yuan late yesterday. It traded at 94.91 Australian cents from 94.84 cents and at 51.69 British pence from 51.74 pence. The kiwi fell to 59.29 euro cents from 59.42 cents and rose to 77.97 yen from 77.70 yen yesterday.