New Zealand Dollar Down Late on China Growth Concerns

 
   By Lucy Craymer 
 

        WELLINGTON, New Zealand--The New Zealand dollar was trading sharply lower against the U.S. dollar late Monday due to concerns about the economic outlook of the country's largest trading partner, China.
        China's exports slid 15% in March while imports slumped 12.7%, customs data showed Monday. This suggested to economists that the world's second-largest economy was being hit with sluggish demand at home and abroad.
        Western Union Business Solutions Corporate Dealing Manager Chris Hunter said the data along with the World Bank saying China's pace of growth will slow to 7.1% in 2015 from 7.4% a year earlier had weighed on the New Zealand dollar throughout afternoon trading.
        In late Wellington trading, the New Zealand dollar was at US$0.7455 versus US$0.7569 late Friday and at A$0.9826 versus A$0.9830.
        The New Zealand dollar had been somewhat supporter earlier in the day as local March retail card data suggested that the quarterly retail data would be solid.
        Deutsche Bank NZ chief economist Darren Gibbs said there was nothing in the report to suggest any need for easier monetary policy settings in New Zealand.
        "At this point the economy continues to expand at a healthy pace and we continue to foresee a stronger inflation environment in 2016 and beyond," he said.
        The next driver of the local dollar will be the release of New Zealand Institutional Economic Research's business-confidence survey on Tuesday. ANZ said it is expected to show confidence remains solid.
        Write to Lucy Craymer at lucy.craymer@wsj.com, @lucy_craymer
        (END) Dow Jones Newswires

        April 13, 2015 01:14 ET (05:14 GMT)

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