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

 

NZD weakens as Huawei arrest fans US-China tension concerns

NZD weakens as Huawei arrest fans US-China tension concerns

By Rebecca Howard

Dec. 6 (BusinessDesk) - The New Zealand dollar fell against the greenback after Canada's arrest of Huawei's chief financial officer stoked concerns that tensions between the US and China may flare up again.

The kiwi traded at 68.62 US cents at 5pm in Wellington, from 68.93 cents at 8am in Wellington and 69.13 cents yesterday. The trade-weighted index was at 74.87 down from 75.19 yesterday.

Wanzhou Meng, also deputy chair of the Chinese telecommunications giant, was arrested in Vancouver on Dec.1, a spokesman for Canada's Department of Justice said, according to Radio New Zealand. She was being sought for extradition by the United States, he said.

The news added to growing concerns that the US and China may not be able to resolve their trade dispute as the two nations kick off 90 days of talks.

"The markets sold off quite aggressively," said Mark Johnson, a private client manager at OMF. He said the kiwi may slide further.

"If we see further risk off, that's got to be positive for the US dollar."

Johnson said the kiwi may also have been weighed slightly by the news that Fonterra lowered its forecast payout to its farmer-shareholders. It now expects to pay farmers $6.00-$6.30 per kilogram of milk solids, down from the prior range of $6.25-$6.50/kgMS. The payout will now be between $9 billion and $9.8 billion versus $9.69 billion and $10.08 billion if the old forecast had held.

The kiwi did. however, gain against the Aussie, trading at 95.04 Australian cents from 94.73 cents yesterday. The New Zealand dollar has been benefiting from weaker data across the Tasman and today was no exception. The October trade balance was below expectations. While retail sales rose in line with expectations, they only lifted 0.3 percent.

Looking ahead, Johnson said markets will be watching for the US jobs data overnight Friday for any clues about the US Federal Reserve's plans for interest rates.

The kiwi traded at 77.35 yen from 78.08 yen yesterday and fell to 4.7215 Chinese yuan from 4.7458 yuan. It declined to 60.51 euro cents from 61.02 cents yesterday and fell to 53.93 Britsh pence from 54.43 pence.

New Zealand's two-year swap rate decreased 1 basis point to 2.05 percent; the 10-year swaps dropped 3 basis points to 2.79 percent.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Stats NZ: Largest Drop In Terms Of Trade In A Decade As Dairy Export Prices Sour

Lower export prices for dairy, meat, and logs in the September 2020 quarter led to the biggest drop in terms of trade since June 2009, Stats NZ said today. Export prices fell in the September 2020 quarter, down 8.3 percent from its highest ever ... More>>

ALSO:

Stats NZ: Election Boosts October Job Numbers

Job numbers were boosted by general election staff in October 2020, along with rises in the manufacturing, retail, and hospitality industries, Stats NZ said today. Filled jobs rose by 27,667 to 2.2 million in October 2020 compared with September, after ... More>>

Government: New Year Border Exception For Seasonal Workers In The Horticulture And Wine Industries

2000 additional RSE workers to enter New Zealand early next year employers must pay these workers at least $22.10 an hour employers will cover costs of managed isolation for the RSE workers RSE workers will be paid the equivalent of 30 hours work a week ... More>>

ALSO:


Media: Discovery, Inc. Completes Acquisition Of New Zealand’s Mediaworks TV Ltd

Auckland, New Zealand, December 1, 2020 - Discovery, Inc. (“Discovery”), the global leader in real-life entertainment, has completed its acquisition of New Zealand’s leading independent free-to-air commercial broadcaster, MediaWorks TV Ltd, now operating ... More>>

Department Of Conservation: Big Year Underway At Albatross Colony

Familiar faces are returning for the new season of Royal Cam, with a big breeding year underway for the toroa/northern royal albatross colony on Otago’s windswept Pukekura/Taiaroa Head. More than 120 albatrosses, a taonga species, have returned ... More>>

Real Estate: ASB Survey Reveals Majority Of Kiwis Expect House Prices To Keep Climbing

ALSO:

House price expectations are soaring as New Zealand’s housing market shifts up a gear. But stretched affordability is putting a dent in perceptions of whether it’s a good time to buy. While Kiwis reveal they do expect interest rates to fall further. ... 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: