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

 

NZ dollar hits 5-month high as US-China trade tensions ease


By Paul McBeth

Dec. 3 (BusinessDesk) - The New Zealand dollar rose above 69 US cents for the first time since June as Chinese and US leaders found common ground to deflate trade tensions that threaten to slow the global economy.

The kiwi jumped to 69.16 US cents at 8am in Wellington from 68.78 cents on Friday in New York and 68.65 cents in Asia last week. The trade-weighted index advanced to 75.31 from 75.05 last week.

New Zealand is the first market to open since the G20 leaders' summit in Buenos Aires over the weekend, where US and Chinese presidents Donald Trump and Xi Jinping agreed to measures cooling their trade dispute.

The US won't push through increased tariffs from January, China agreed to buy a substantial amount of American products, and both parties will discuss structural changes to intellectual property protection, non-tariff barriers, cyber intrusions, services and agriculture. The stoush has threatened to slow global growth and weighed more heavily on open trading economies such as New Zealand.

"The US-China trade war has been a key driver of markets for much of this year and a de-escalation of tension sets the scene for a broadly-based rally in risk assets," Bank of New Zealand senior markets strategist Jason Wong said in a note. "We will have to revise our NZD forecasts higher."

Earlier forecasts had been "based on further tariffs proceeding, with the associated hit to global growth and spillover effects."

Local data today include third-quarter terms of trade, which is expected to be flat. Australian building consents and Chinese manufacturing figures are also due today.

The kiwi traded at 93.75 Australian cents from 93.68 cents last week and rose to 4.8099 Chinese yuan from 4.8009 yuan. It climbed to 78.69 yen from 78.31 yen last week.

The local currency traded at 54.12 British pence from 54.05 pence last week after another minister resigned from Theresa May's government over the Brexit deal. The kiwi traded at 60.89 euro cents from 60.98 cents last week.

(BusinessDesk)

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Grey Power: Is Disappointed To Learn Of More Bank Closures

Many older people are being left without essential services because of cost cutting and the march of modern technology. It is now expected that most banking transactions can occur via the internet or telephone. Jan Pentecost, President of the Grey Power ... More>>

ALSO:

Economy: Supply Chain On Brink Of Overload Says National Road Carriers

The New Zealand supply chain is on the brink of overload and it looks like the upcoming peak imports season may push it over the edge says National Road Carriers Association (NRC) CEO David Aitken. “Worldwide supply chains are in disarray,” says Mr Aitken. ... More>>

Retail: Supermarkets Announced As Government’s Second Market Study

The Government has today launched a market study to ensure New Zealanders are paying a fair price for groceries. More>>

ALSO:

Statistics New Zealand: Retail Sales Recover In The September 2020 Quarter

Retail sales values recorded the largest September quarter rise since the series began in 1995, Stats NZ said today. Spending on major household items, vehicles, and groceries contributed to the strong 7.4 percent ($1.8 billion) rise in total ... More>>

Kea Aerospace: New Zealand Flies Into The Stratosphere

Development has started on a solar-powered, unmanned aircraft that can fly in the stratosphere continuously for months at a time. The zero-emission aircraft will carry a suite of imagery equipment that will be game-changing for many industries, vastly ... More>>

Stats NZ: Births And Deaths: Year Ended September 2020

Births and deaths releases provide statistics on the number of births and deaths registered in New Zealand, and selected fertility and mortality rates. Key facts For the year ended September 2020: 57,753 live births and 32,670 deaths ... More>>

ALSO:


Forest & Bird: Kākāpō Wins Bird Of The Year 2020

The nation has voted and Aotearoa New Zealand has a new Bird of the Year. New Zealand’s moss-colored flightless parrot has climbed to the top-spot for the second time in Forest & Bird’s annual Te Manu Rongonui o Te Tau/Bird of the Year competition. ... More>>