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

 

NZ dollar firm as trade tensions ease, US data improves


By Rebecca Howard

Sept. 6 (BusinessDesk) - The New Zealand dollar remains firm on global optimism that the US and China might reach a trade deal and after better-than-expected US data overnight.

The kiwi was trading at 63.76 US cents at 7:55 am in Wellington from 63.71 cents at 5pm. The trade-weighted index was at 71.03 from 70.96.

Risk appetite improved yesterday when China and the US agreed to hold high-level talks in October in Washington. It got a further boost when the Institute for Supply Management said its non-manufacturing activity index increased to a reading of 56.4 in August from 53.7 in July. Economists polled by Reuters had expected a lift to 54.0.

According to ISM, survey respondents "remain concerned about tariffs and geopolitical uncertainty; however, they are mostly positive about business conditions.”

The ADP National Employment Report also showed private payrolls lifting by 195,000 jobs in August after rising by 142,000 in July.

News of the trade talks “was the spark that started the risk-on fire, a fire that was subsequently fueled by some better-than-expected US data overnight,” Kiwibank trader Mike Shirley said.

The ADP data suggests a solid non-farm payrolls report tonight, said ANZ Bank. The median expectation is that the US economy added 160,000 jobs last month.

"Without a downturn in private service sector jobs in the US, history shows that a recession is very unlikely," ANZ FX/rates strategist Sandeep Parekh said.

US Federal Reserve chairman Jerome Powell is also scheduled to speak Friday in Zurich on the “Economic Outlook and Monetary Policy.”

The speech will be closely watched as it is the final policy guidance before the Fed goes into blackout ahead of its mid-September meeting, Parekh said. ANZ is forecasting a 25 basis-point Fed cut this month and another before year-end.

The New Zealand dollar was trading at 93.47 Australian cents from 93.48, at 51.70 British pence from 52.05, at 57.75 euro cents from 57.77, at 68.22 yen from 67.88 and at 4.5568 Chinese yuan from 4.5449.

(BusinessDesk)

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

$7.5 Billion Surplus: Government Accounts "Show Strong Economy"

“The surplus and low levels of debt show the economy is in good shape. This allows the Government to spend more on infrastructure and make record investments in health and education,” Grant Robertson says. More>>

ALSO:

New OIO Application Trumps Judicial Review: OceanaGold Cleared To Buy Land For Waihi Tailings Expansion

In a surprise turnaround, the government has given OceanaGold a greenlight to buy land to expand its Waihi mine after the application was previously turned down by Land Information Minister Eugenie Sage. More>>

ALSO:

Christchurch Rebuild: Fletcher Sued For $7.5m Over Justice Precinct

Fletcher Building is being sued for $7.5 million by utilities contractor Electrix, one of the subcontractors on the Christchurch Justice and Emergency Services Precinct. More>>

Three New Drugs: PHARMAC Signs Bundle Deal For More Cancer Medicines

420 New Zealanders with lung cancer, breast cancer, multiple sclerosis and respiratory disease will benefit each year from a bundle deal PHARMAC has finalised with a medicine supplier. More>>

ALSO:

"Levels Playing Field": Government Responds To Electricity Price Review

The changes announced today include: • Supporting new and independent retailers by requiring the big power companies to sell into the wholesale market at affordable rates. • Extending discount rates to all customers • A pilot scheme to help customers who have not switched power providers before to shop around for better deals... More>>

ALSO: