Sharechat Logo

NZ dollar falls vs Aussie on China data, upbeat business across theTasman

Tuesday 14th February 2017

Text too small?

The New Zealand dollar fell against the Australian dollar after a strong business survey across the Tasman and better-than-expected data out of China.

The kiwi declined to 93.52 Australian cents as at 5 pm in Wellington from 93.92 late yesterday. It was at 71.75 US cents from 72 cents late yesterday. The trade-weighted index fell to 78.17 from 78.26.

"It's been more of an Aussie day," said Imre Speizer, senior FX strategist at Westpac Banking Corp. "First there was a decent business conditions survey, so growing signs the Australian economy is improving. The second part of that story was the Chinese CPI and PPI were both a bit higher than expected, pointing to signs of improvement there as well," he said.

National Australia Bank's monthly survey of more than 400 firms showed its index of business conditions jumped 6 points to +16 in January. That took it back to the highs seen in mid-2007 and well above the long-run average of +5, Reuters reported. In China, the producer price inflation picked up more than expected in January to near six-year highs as prices of steel and other raw materials extended a rally, adding to views that global manufacturing activity is building momentum. China consumer inflation also rose more than expected to near three-year highs.

"Both of those things benefited the Aussie but were neutral for Kiwi," said Speizer.

He said the market is now closely focused on US Federal Reserve chair Janet Yellen's Senate testimony later in the global trading day. Yellen is scheduled to appear before the Senate Banking Committee at about 4am NZ time tomorrow and Speizer said investors will be looking for any clues about possible rate hikes against a backdrop of market speculation she will reiterate the Fed's view that there could be three interest rate hikes this year, starting as soon as next month.

"We may get a good move in the US dollar tonight," he said.

The kiwi fell to 81.48 yen from 82.02 yen. It declined to 57.24 British pence from 57.63 pence and fell to 67.67 euro cents from 67.80 cents. The kiwi slipped to 4.9354 yuan from 4.9551 yuan.

New Zealand's two-year swap rose 2 basis points to 2.33 percent while 10-year swaps rose 3 basis point to 3.45.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
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:

MARKET CLOSE: NZ shares mixed ahead of Anzac Day holiday; A2, Synlait fall further, Fisher & Paykel bounces
USX: Introducing Pharmazen Limited
NZ dollar falls to 3 1/2 month low as rising US interest rates bring trading back to fundamentals
Gold Report 23rd April 2018
Gold Report 16th April 2018
Gold Report 9th April 2018
Gold Report 3rd April 2018
Gold Report 26th March 2018
Gold Report 19th March 2018
Gold Report 12th March 2018

IRG See IRG research reports