INDEPENDENT NEWS

NZ dollar firms as investors await outcome of US-China trade

Published: Fri 10 May 2019 11:15 AM
NZ dollar firms as investors await outcome of US-China trade talks
By Rebecca Howard
May 10 (BusinessDesk) - The New Zealand dollar firmed on improved prospects for a deal out of US-China trade talks this week.
The kiwi was trading at 65.91 US cents at 8am in Wellington from 65.72 US cents yesterday. The trade-weighted index was at 72.15 points from 71.98.
Markets were weighed by escalating trade tensions overnight but sentiment got a lift when President Donald Trump reiterated a deal is still possible this week, even as he plans to raise tariffs on US$200 billion of Chinese goods within hours to 25 percent from 10 percent. Trump said he had received a "beautiful" letter from his Chinese counterpart Xi Jinping and may speak to him by phone.
The two sides are still meeting in Washington with talks to wrap up Friday in the US.
"Unsurprisingly, markets were focused on the US-China trade talks with expectations low that there will be any resolution to the impasse this week, until last minute comments from President Trump that a deal could still be reached," said ANZ Bank economist Michael Callaghan.
With little domestic data, the focus will remain offshore for direction. Callaghan said the kiwi has support around 65.60 US cents and faces resistance at 66.70. The Reserve Bank of Australia's statement on monetary policy will be watched as it may shed some light on why they decided to hold rates at 1.50 percent at this week's meeting. The RBA's decision contrasted with that of the Reserve Bank of New Zealand, which opted to cut rates by 25 basis points to 1.50 percent, adding to pressure on the kiwi.
The domestic currency was trading at 94.26 Australian cents from 94.25. It was at 50.64 British pence from 50.50. It was at 58.73 from 58.70 euro cents, at 72.30 Japanese yen from 72.25, and at 4.4981 Chinese yuan from 4.4737.
(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

Next steps for Auckland light rail
By: New Zealand Government
Gender pay gap unchanged since 2017
By: Statistics New Zealand
Stuff pulls pin on media companies' joint ad-buying business
By: BusinessDesk
Transdev to Acquire Auckland And Wellington Bus Businesses
By: Transdev
Twyford's choice: NZTA or Super Fund for Auckland light rail
By: BusinessDesk
A whole term of Government with no shovels in the ground
By: New Zealand National Party
Transport Agency welcomes next steps for light rail
By: NZTA
Light rail delay creates highway opportunities
By: Automobile Association
Government taking action to close gender pay gap
By: New Zealand Government
Genter delaying pay equity for publicity stunt
By: New Zealand National Party
Gender Pay Imbalance - call for PM to take action
By: New Zealand Council of Trade Unions
Persistent gender pay gap - need for Govt to move faster
By: NZEI Te Riu Roa
Opportunity to fix the gender pay gap in tertiary sector
By: Tertiary Education Union
Government must take the handbrakes off, deliver equal pay
By: Public Service Association
View as: DESKTOP | MOBILEWe're in BETA! Send Feedback © Scoop Media