Business Scoop
Network

NZ dollar gets lift from tariff delay on some China goods

Article – BusinessDesk

Aug. 14 (BusinessDesk) – The New Zealand dollar gained against the Japanese yen as risk appetite got a solid lift from news that some US tariffs would be delayed.
By Rebecca Howard

Aug. 14 (BusinessDesk) – The New Zealand dollar gained against the Japanese yen as risk appetite got a solid lift from news that some US tariffs would be delayed.

The kiwi was trading at 68.83 yen at 8am in Wellington from 67.94 yen at 5pm yesterday. It was at 64.53 US cents from 64.45 US cents at 5pm in Wellington.

“The JPY underperformed against all G10 as safe-haven demand pulled back sharply,” said ANZ FX/rates strategist Sandeep Parekh.

Investors were cheered when the United States Trade Representative said “certain products” are being removed from the tariff list that will go into effect Sept. 1. Others would be delayed to Dec. 15 and include “cell phones, laptop computers, video game consoles, certain toys, computer monitors, and certain items of footwear and clothing. “

US President Donald Trump told reporters “we are doing this for the Christmas season,” according to The Guardian.

“The announcement followed as communications between the US and China opened up again, with Trump stating his administration had a very productive call with China and that he thinks Beijing wants to do something drastic on trade,” said Parekh.

US inflation data was also slightly stronger than expected. The core consumer price index, which excludes food and energy, rose 0.3 percent from the prior month, and 2.2 percent from a year earlier, according to a Labor Department report. Dow Jones Newswires said the monthly increase exceeded economists’ forecast for a 0.2 percent gain.

Kiwibank trader Mike Shirley said the data hadn’t really dented expectations of future rate cuts by the US Federal Reserve.

Markets are fully pricing another rate cut at the mid-September meeting, according to CME Group’s FedWatch tool.

The trade-weighted index was unchanged at 71.71. The kiwi was at 94.95 Australian cents from 95.37, at 53.50 British pence from 53.41, at 57.75 euro cents from 57.60 and at 4.5433 yuan from 4.5522.

(BusinessDesk)

ends

Content Sourced from scoop.co.nz
Original url