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

 

NZ dollar dips as China-US trade tensions cast pall

NZ dollar dips as China-US trade tensions cast pall over global markets


By Paul McBeth

Dec. 10 (BusinessDesk) - The New Zealand dollar declined as attempts by the US to extradite a Huawei Technologies executive heightened concerns that the US-China trade tensions will slow the global economy.

The kiwi traded at 68.49 US cents as at 8am in Wellington from 68.66 cents on Friday in New York, down from 68.83 cents in Asia last week. The trade-weighted index decreased to 74.78 from 74.92 last week.

Stocks on Wall Street ended Friday weaker, with the Dow Jones Industrial Average falling 2.2 percent, as traders digested the arrest of Huawei chief financial officer Meng Wanzhou in Canada. US authorities are seeking her extradition over claims she was involved in violating US sanctions against Iran. Chinese authorities are protesting the arrest, raising fears the trade stoush between the world's two biggest economies will reignite.

Weaker than expected US jobs growth also weighed on Wall Street, after Bureau of Statistics figures showed the world's biggest economy added 155,000 jobs in November, missing the 198,000 forecast.

"The week is likely to start with the NZD again unlikely to be pushing higher, but whether it can make progress to the downside is another matter," ANZ Bank New Zealand economists Sharon Zollner and Philip Borkin said in a note. "It has been reasonably resilient through the latest equity malaise, in part because the USD is effectively now a high quality ‘risk’ currency too."

Local data today include September quarter manufacturing figures which will provide the last data point ahead of gross domestic product stats out next week.

The kiwi slipped to 95.31 Australian cents from 95.48 cents last week, its highest close since July 2017. Bank of New Zealand economists expect the kiwi to outperform its trans-Tasman counterpart through to the middle of 2019 due to Australia's soft housing market and improving terms of trade relative to Australia's.

The local currency fell to 53.76 British pence from 53.96 pence last week in the run-up to the UK parliament's Brexit vote on Tuesday. It dropped to 60 euro cents from 60.37 cents last week.

The kiwi declined to 77.02 yen from 77.45 yen last week and dropped to 4.7020 Chinese yuan from 74.7220 yuan.

(BusinessDesk)

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

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:

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>>

Stats NZ: Annual Goods Trade Surplus At 28-Year High

New Zealand’s annual goods trade surplus reached a 28-year high of $2.2 billion as imports tumbled in the year ended October 2020, Stats NZ said today. “This is the largest annual surplus since the July 1992 year, driven mainly by much lower ... More>>

ComCom: How Real Is That Bargain?

The Commerce Commission urges retailers and consumers to think hard about the bargains being offered as ‘Black Friday’ and Christmas draw near. Black Friday has now overtaken Boxing Day in terms of retail spending, according to data from electronic ... 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>>