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

 

NZ dollar still firm against greenback

NZ dollar still firm against greenback but eases after weak China data

By Rebecca Howard

April 11 (BusinessDesk) - The New Zealand dollar remained firm against the greenback as concerns about a global trade war eased but did lose ground in Asian trading after weaker-than-expected Chinese inflation data.

The kiwi traded at 73.46 US cents at 5pm in Wellington versus 73.68 US cents at 8am and 73.30 cents late yesterday. The trade-weighted index rose to 75.28 from 75.04 yesterday.

The New Zealand dollar got a solid lift after both Chinese President Xi Jinping and US President Donald Trump were seen to be more conciliatory on trade and potential tariffs. However, it eased when China's National Bureau of Statistics reported the consumer price index rose 2.1 percent in March from a year earlier, compared with a 2.9 percent gain in February. The reading undershot the 2.5 percent increase forecast by economists polled earlier by The Wall Street Journal. The producer price index rose 3.1 in March versus 3.7 percent in February, also undershooting market expectations for a 3.2 percent increase.

"That was certainly the catalyst" for the slide in the kiwi, said Ross Weston, a senior trader at Kiwibank, adding that it may have triggered some profit taking, given how strong the kiwi has been of late.

Capital Economics said in a note that "the prospect of softening price pressures is one reason we expect the People’s Bank, which has already pushed down market interest rates in recent months despite pretending to follow the Fed, to continue to loosen monetary conditions in the coming quarters in response to cooling economic activity."

Weston said investors will be watching for a speech by assistant RBNZ governor John McDermot on inflation targeting in New Zealand, on Wednesday morning.

The kiwi traded at 4.6144 yuan from 4.6130 yuan late yesterday. It was unchanged at 94.76 Australian cents and rose to 51.79 British pence from 51.68 pence. The kiwi traded at 59.40 euro cents from 59.50 cents and rose to 78.62 yen from 78.49 yen.

New Zealand's two-year swap rate was unchanged at 2.25 percent and the 10-year swap rate eased 1 basis point to 3.14 percent.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Land Report: Issues With Soil Degradation

An environmental report released today has found we are damaging and losing our soils and our native plants and animals. More>>

ALSO:

Water Quality Report: Cause For Optimism

National River Water Quality Trends released by Land, Air, Water Aotearoa (LAWA) this week, reveal that for all river water quality parameters monitored over a 10 year period, more sites were improving than deteriorating. More>>

ALSO:

IMF Report On NZ: Positive Economic Outlook

Minister of Finance Grant Robertson has welcomed the IMF’s Concluding Statement, released following its annual visit, which provides an independent assessment of the strength of the New Zealand economy. More>>

ALSO:

Retail Power Price: Review Panel Named

The Energy and Resources Minister Megan Woods has released the details of who will sit on an expert advisory panel which is tasked with leading a review into the price of electricity in New Zealand. More>>

ALSO:


Increasingly Disruptive Threats: Govt Cyber Security Refresh

Broadcasting, Communications and Digital Media Minister Clare Curran today announced a comprehensive refresh of New Zealand’s approach to cyber security. More>>

ALSO:


Regional Growth: Action Plan To Modernise Taranaki’s Economy

The Provincial Growth Fund (PGF) will invest up to $20 million to help future-proof the Taranaki region by diversifying its economy, creating additional jobs and leveraging off the strong base the region has established through its oil, gas and agricultural ... More>>

ALSO:

Winding Down Irrigation: Funding Ends For Crown Irrigation Investment

The Government has begun winding down public funding for large-scale irrigation through Crown Irrigation Investments Limited (CIIL), in line with the Coalition Agreement and the Confidence & Supply Agreement. More>>

ALSO: