Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More

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

 

NZ dollar firms on improving risk appetite

NZ dollar firms on improving risk appetite as US-China trade worries ease


By Rebecca Howard

Aug. 27 (BusinessDesk) - The New Zealand dollar found some support after risk appetite got a lift when US President Donald Trump talked up the prospects of a trade deal with China.

The kiwi was trading at 63.83 US cents at 7:55 am versus 63.75 US cents at 5pm in Wellington. The trade-weighted index was at 71.23 from 71.17.

Risk assets, like the kiwi dollar, benefited when Trump tweeted that he had "great respect for the fact that President Xi & his representatives want 'calm resolution.' So impressed that they are willing to come out & state the facts so accurately. This is why he is a great leader & representing a great country. Talks are continuing."

Tensions flared late last week when Trump announced further tariffs on targeted Chinese goods after China unveiled retaliatory tariffs of its own. Fuel was added to the fire when Trump said he wanted US companies to leave China.

According to Trump, however, US trade officials received overnight calls from the Chinese saying they wanted to return to the table, CNBC reported.

"Markets rallied on relative trade optimism after Trump reported that China called wanting to restart talks," said ANZ economist Michael Callaghan. "The NZD drifted up from fresh lows as safe-haven currencies slipped overnight," he said.

He noted, however, that the kiwi dollar has been "rising and falling as global risk appetite has waxed and waned on trade headlines, but has dropped from just under 68 US cents in late July to under 64 US cents today."

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

He said the main drivers are commodity prices, interest rate differentials and global risk appetite.

"All up, while it will likely continue to be a bumpy ride, we remain comfortable with our forecast of the NZD/USD declining to 0.61 by the end of the year," he said.

The New Zealand dollar was trading at 94.24 Australian cents from 94.65, at 52.22 British pence from 51.98, at 57.50 euro cents from 57.20, at 67.73 yen from 67.13 and at 4.5633 Chinese yuan from 4.5545.

(BusinessDesk)

ends

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Business Headlines | Sci-Tech Headlines

 
GenPro: General Practices Begin Issuing Clause 14 Notices

GenPro has been copied into a rising number of Clause 14 notices issued since the NZNO lodged its Primary Practice Pay Equity Claim against General Practice employers in December 2023.More

SPADA: Screen Industry Unites For Streaming Platform Regulation & Intellectual Property Protections

In an unprecedented international collaboration, representatives of screen producing organisations from around the world have released a joint statement.More

 
 
 
 
 
 
 
 
 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.