New Zealand Dollar Under Pressure After China Manufacturing PMI

 
  By Rebecca Howard 
 

        WELLINGTON, New Zealand--The New Zealand dollar was under pressure Friday after signs emerged of a deepening slowdown in China, though the currency fared better than many of its peers.
        The New Zealand dollar was at US$0.6592 in late Wellington trading, compared with US$0.6629 late Thursday. It was at $0.9031 Australian dollars versus A$0.8989 previously.
        It fell along with many Asian currencies after the preliminary Caixin China Manufacturing Purchasing Managers' Index, a gauge of nationwide manufacturing activity, dropped to a 15-month low of 48.2 in July, compared with 49.4 in June, Caixin Media Co. said Friday.
        China is one of New Zealand's largest trading partners, so any slowdown there could weigh on the outlook for New Zealand's exports.
        New Zealand recorded a NZ$60 million (US$39.6 million) goods trade deficit for June and a NZ$2.8 billion deficit for the year ended June, Statistics New Zealand said Friday.
        "Whole-milk powder to China continued its recent falls, and was down NZ$92 million," international statistics manager Jason Attewell said. Overall milk powder, butter and cheese exports fell 29% in June from a year ago.
        Still, the New Zealand dollar is holding up better than several other Asian currencies, including the Australian dollar, after the China data release.
        The New Zealand dollar continues to benefit from the central bank's rate cut and statement Thursday, which was less dovish than market expectations.
        Write to Rebecca Howard at rebecca.howard@wsj.com; @FarroHoward
        (END) Dow Jones Newswires

        July 24, 2015 02:17 ET (06:17 GMT)

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