INDEPENDENT NEWS

NZ dollar falls vs Aussie

Published: Wed 19 Sep 2018 11:43 AM
NZ dollar falls vs Aussie on early signs of moderation in US-China trade war
By Paul McBeth
Sept. 19 (BusinessDesk) - The New Zealand dollar fell against its trans-Tasman counterpart as investors were buoyed by more moderate tariffs in the US-China trade stoush.
The kiwi declined to 91.22 Australian cents from 91.56 cents yesterday. It edged down to 65.84 US cents from 65.90 cents yesterday.
The Australian dollar was the best-performing G10 currency overnight, recently up 0.5 percent to 72.18 US cents, as investors took heart from the US and China imposing smaller tariffs than initially feared. The US introduced a 10 percent tariff on US$200 billion of Chinese imports and China's responded by slapping 5-10 percent tariffs on US$60 billion of American goods. Australia's bigger export exposure to China typically means its currency reacts to events there more sharply than the kiwi.
"Markets seem to be taking some solace that the recent tariff announcements could have been even worse, with this cross easing overnight," ANZ Bank New Zealand economists Liz Kendall and Philip Borkin said, referring the kiwi/Aussie crossrate. "Economically, we think this cross should continue to fall, but it would take a brave person to say the trade spat is over yet."
Dairy prices fell 1.3 percent at the latest Global Dairy Trade auction, with whole milk powder prices down 1.8 percent to US$2,768 a tonne. A decline was expected.
Traders will watch June quarter balance of payments due today. It is expected to show the annual current account deficit widened to 2.9 percent of gross domestic product from 2.8 percent in the first quarter. The Westpac-McDermott Miller consumer confidence will also attract attention.
The kiwi fell to 4.5160 Chinese yuan from 4.5207 yuan yesterday and increased to 73.94 yen from 73.79 yen. It was unchanged at 50.09 British pence and traded at 56.42 euro cents from 56.36 cents yesterday. The trade-weighted index was little changed at 71.48 from 71.57.
(BusinessDesk)
ends
BusinessDesk
Independent, Trustworthy New Zealand Business News
The Wellington-based BusinessDesk team provides a daily news feed for a serious business audience.
Contact BusinessDesk
Email:

Next in Business, Science, and Tech

Helping regions fill skills shortages and Kiwis come first
By: New Zealand Government
Report: Govt Inquiry into Auckland Fuel Supply Disruption
By: Inquiry into The Auckland Fuel Supply Disruption
Trump authorises use of emergency crude stockpile
By: BusinessDesk
UK trade minister pops up into Wellington
By: BusinessDesk
UPDATE: Tamarind halts Tui drilling; OMV assesses options
By: BusinessDesk
Migrant Workers Association criticises work visa overhaul
By: RNZ
More detail needed on migrant worker policy
By: BusinessDesk
Work visa changes putting New Zealanders first
By: New Zealand First Party
MIA welcomes Government sector agreement announcement
By: Meat Industry Association
Streamlined temporary work visa process is a real positive
By: Meat Industry Association
Horticulture NZ welcomes temporary work visa changes
By: Horticulture NZ
Immigration changes a boost for regional New Zealand
By: Business NZ
Work visa changes to support NZ tourism employers
By: Tourism Industry Aotearoa
DairyNZ welcomes immigration changes
By: DairyNZ
Temporary work visa improvements a welcome start
By: Business Central - Wellington
View as: DESKTOP | MOBILEWe're in BETA! Send Feedback © Scoop Media