NZ dollar steady as Chinese growth slows

  • 19/10/2015
NZ dollar steady as Chinese growth slows

By Paul McBeth

The New Zealand dollar was little changed in local trading as Chinese economic data gave a mixed message for the world's most populous nation, with gross domestic product slowing less than expected, though fixed-asset investment was dialled back to a 15-year low and industrial production was below forecast.

The kiwi traded at 67.96 US cents at 5pm in Wellington from 67.95 cents at 8am, and 68.08 cents on Friday in New York. The trade-weighted index slipped to 72.72 from 72.99 last week.

China's economy grew at a 6.9 percent annual pace in the three months ended September 30, according to National Bureau of Statistics data.

That was ahead of the 6.8 percent pace of growth economists were expecting, and while fixed asset investment rose at its slowest pace since 2000 and industrial output was below forecasts, the GDP expansion and stronger services sector helped allay fears about the strength of the world's second biggest economy, which is also New Zealand and Australia's largest trading partner.

Fonterra Co-operative Group's GlobalDairyTrade auction tomorrow in the US will be watched by traders looking to gauge the local economy after the world's biggest dairy exporter scaled back supply to help push up milk product prices.

New Zealand's two-year swap rate edged up one basis point to 2.71 percent at 5pm in Wellington and the 10-year swap decreased two basis points to 3.47 percent.

The local currency was little changed at 4.3229 Chinese yuan from 4.3246 yuan on Friday in New York, and fell to 93.42 Australian cents from 93.70 cents. It decreased to 59.82 euro cents from 60 cents last week, and was little changed at 44.02 British pence from 44.10 pence. The kiwi traded at 81.15 yen from 81.30 yen on Friday in New York.

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