Sharechat Logo

NZD weaker against greenback as trade jitters continue

Thursday 28th February 2019

Text too small?

The New Zealand dollar was weaker as investors fret about whether the US and China will be able to reach a deal after US trade negotiator Robert Lighthizer told the House Ways and Means committee there's still hard work to be done.

The kiwi traded at 68.40 US cents at 7:45 am in Wellington versus 68.87  late yesterday. The trade-weighted index was at 73.84 points from 74.26.

Lighthizer said the US is pushing for a deal that includes "significant structural changes" to China's economic model and that it is enforceable.  According to Bloomberg, he said it is still too early to see if China will concede to those demands. 

ANZ Bank  FX/Rates strategist Sandeep Parekh says the demands are a "a pretty high hurdle, and there was a modest risk-off move in markets in response."  He notes the comments are not entirely in line with US President Trump’s tweets earlier in the week suggesting that a deal was close, which added to the jitters in markets.

Lighthizer also explicitly noted that China simply buying more US exports was not sufficient, and said that signing a deal - with two “ifs” thrown in for good measure - wouldn’t be the end of it, given a lack of trust that commitments would be made good on, said Parekh.

Looking ahead domestically, investors will be watching for ANZ business confidence data as well as capex and private sector credit data in Australia and China PMIs. 

The New Zealand dollar was trading at 95.88 Australian cents from 96.17, at 75.88 yen from 76.17, at 51.39 British pence from 51.99, at 60.12 euro cents from 60.53 and 4.5720 Chinese yuan from 4.6092.

(BusinessDesk)

Bond Offer: Infratil Ltd, 7.2 year & 10.2 year unsecured unsubordinated bond


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

ANALYSIS: Should penalties for continuous disclosure breaches be relaxed?
Fletcher seeks urgent talks on Ihumatao stalemate
NZ economy grows 0.5% in June quarter, beating expectations
Restaurant Brands lifts 2Q sales; appetite for KFC offsets ditched Starbucks
Auckland jet fuel arrangements a potential barrier to new entrants
NZ dollar weaker after Fed split on outlook for further US cuts
Leading judge says court administration model 'outdated'
MARKET CLOSE: NZ shares fall; Goodman placement sees property stocks sold
NZ dollar eases as market eyes pending GDP data
Evolve shareholders demand answers

IRG See IRG research reports