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

 

NZ dollar falls on weaker Chinese imports data

NZ dollar falls on weaker Chinese imports data

By Jonathan Underhill

Oct. 13 (BusinessDesk) - The New Zealand dollar fell after Chinese figures showed a bigger-than-expected drop in imports last month, which weighed on the currencies of countries that ship commodities to the world's second-largest economy.

The kiwi fell to 66.74 US cents as at 5pm in Wellington from 66.97 cents yesterday. The trade-weighted index fell to 71.45 from 71.57 yesterday.

China's imports tumbled 17.7 percent in September from a year earlier, more than expected, while exports slipped just 1.1 percent, leaving a trade surplus of 376 billion yuan, or about US$59 billion. The Australian dollar also fell after the trade figures. Australia counts China as its biggest market, while for New Zealand it is the second-largest after Australia for exports, including dairy products.

"The trade figures were slightly bearish for the kiwi," said Imre Speizer, a strategist at Westpac Banking Corp. "If they are importing less, some of that is stuff from us and from Australia."

The kiwi and the Aussie dollars had already weakened ahead of the trade data as the greenback firmed slightly, he said.

Locally, investors are awaiting Friday's third-quarter inflation figures, which will provide a gauge on whether New Zealand's central bank will cut interest rates further. Traders are pricing in a 22 percent chance of a cut at this month's monetary policy review. Speizer said it is "unlikely" the Federal Reserve will raise interest rates at the end of this month, around the same time as New Zealand's Reserve Bank will review the official cash rate, and a a US Federal Reserve interest rate rise in December was more likely.

The local currency was little changed at 4.2283 Chinese yuan from 4.2393 yuan yesterday. The kiwi traded at 91.22 Australian cents from 91.30 cents yesterday, and fell to 79.78 yen from 80.48 yen. It fell to 58.75 euro cents from 58.88 cents, and traded at 43.57 British pence from 43.68 pence.

The two-year swap rate rose 3 basis points to 2.7 percent and ten-year swaps rose about 3 basis points to 3.54 percent.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

What Lies Beneath: Is The Housing Market Turning?
Rising interest rates, combined with further tightening of credit availability appear to be dampening the enthusiasm of investors and first home buyers. While house values continue to rise, what lies beneath QV's latest figures is growing evidence that price pressure has shifted... More>>



R&NTU: KiwiRail strike notices withdrawn following new offer

Strike notices on KiwiRail have been withdrawn. Rail and Maritime Transport Union General Secretary Wayne Butson says following negotiations between the RMTU and KiwiRail, a new offer from KiwiRail will be taken back to union members for ratification... More>>



Banking: Stress Tests Show Strengthening Bank Resilience

The latest stress tests carried out by the Reserve Bank of New Zealand – Te Pūtea Matua show strengthening resilience in the banking sector and the benefits of continuing to build capital buffers... More>>



Reserve Bank: Deputy Governor Reflects On Time At RBNZ
Central bankers must continue to look forward to guard against the unpredictable, Deputy Governor Geoff Bascand says in a speech published today. Mr Bascand joined the Reserve Bank of New Zealand – Te Pūtea Matua in 2013 during the aftermath of the Global Financial Crisis... More>>


Xero: Data Reveals ICT Expenditure Key To Small Business Sales Growth
Xero, the global small business platform, today released a new report which shows New Zealand small business ICT expenditure has increased 25 percent compared to pre-pandemic levels - more than the UK (20%) and Australia... More>>


Fonterra: Lifts Forecast Farmgate Milk Price Range And Revises Earnings Guidance At First Quarter Update

Fonterra Co-operative Group today lifted its 2021/22 forecast Farmgate Milk Price range, reported a solid start to the 2022 financial year and revised its earnings guidance... More>>


Canterbury Museum: New Research - Bald Haast's Eagle Feasted On Moa Guts

New Zealand’s extinct Haast’s Eagle (Hieraaetus moorei), the largest known eagle, gulped down viscera like a vulture and may even have been bald, new research suggests... More>>