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

 

NZ dollar trades in tight range

NZ dollar trades in tight range as investors grow nervous over US-China trade


By Paul McBeth

Feb. 11 (BusinessDesk) - The New Zealand dollar stuck to a tight trading range as investors remain pessimistic over the ability of US and Chinese trade negotiators to find common ground before their March deadline.

The kiwi traded at 67.40 US cents at 8am in Wellington from 67.44 cents on Friday in New York and 67.50 cents in Asia last week. The trade-weighted index was at 73.11 form 73.15 last week.

Investors had hoped the trade talks would make some headway last week, but that optimism was dashed when US President Donald Trump said he wouldn't meet his Chinese counterpart, Xi Xinping, before new tariffs are imposed on China next month. The trade stoush between the world's two biggest economies has weighed on financial markets, with traders fearing it would trigger a global economic slowdown and crimp corporate earnings.

Investor sentiment was also weighed down by US policymakers failing to agree on a new budget. The US Federal government shut down for a record 35 days at the start of this year, as the Democrat-controlled Congress refused to fund Trump's planned wall on the Mexican border.

"Global markets traded with a risk-off tone for most of Friday after Trump said he wasn’t planning to meet President Xi before US tariffs on China are due to step-up" in early March, Bank of New Zealand interest rate strategist Nick Smyth said in a note. "The NZD was little changed on the day, but NZ rates experienced another sizable fall, with the 10 year NZ government bond yield hitting a record low level."

No local data is scheduled for today. Traders are awaiting the Reserve Bank's first monetary policy statement of the year on Wednesday, with the market pricing in a growing chance of a rate cut.

The local currency slipped to 94.96 Australian cents from 95.11 cents last week, and decreased to 4.5445 Chinese yuan from 4.5499 yuan. It traded at 59.52 euro cents from 59.56 cents last week and was little changed at 52.06 British pence from 52.11 pence. The kiwi traded at 73.94 yen from 74.04 yen last week.

(BusinessDesk)

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

New Reports: Flood Risk From Rain And Sea Under Climate Change

One report looks at what would happen when rivers are flooded by heavy rain and storms, while the other examines flooding exposure in coastal and harbour areas and how that might change with sea-level rise. More>>

ALSO:

Super Fund/Canada Bid v NZTA: Tow Preferred Bidders For Auckland Light Rail

The two preferred delivery partners for Auckland light rail have been chosen and a final decision on who will build this transformational infrastructure will be made early next year, Minister of Transport Phil Twyford announced. More>>

ALSO:

9.3 Percent: Gender Pay Gap Unchanged Since 2017

“While it has remained flat since 2017, the gender pay gap has been trending down since the series began in 1998, when it was 16.2 percent,” labour market statistics manager Scott Ussher said. More>>

ALSO:

Ex-KPEX: Stuff Pulls Pin On Media Companies' Joint Ad-Buying Business

A four-way automated advertising collaboration between the country's largest media companies is being wound up after one of the four - Australian-owned Stuff - pulled the pin on its involvement as part of a strategic review of its operations ... More>>