You are using an older browser version. Please use a supported version for the best MSN experience.

Kiwi gains on deep relationship with China

NZ Newswire logoNZ Newswire 27/03/2017 Rebecca Howard
© Getty Images

A series of cooperation deals inked between New Zealand Prime Minister Bill English and China Premier Li Keqiang gave the kiwi dollar a lift on Monday.

This despite jitters after US president Donald Trump failed to win enough support to repeal and replace the Affordable Care Act known as Obamacare.

The kiwi rose to US70.45c as at 5pm in Wellington from 70.23c as at 8am and 70.27c in late New York trading on Friday.

OMF private client adviser Stuart Ive said the dollar dipped down to around US70c after US president Trump failed to win enough support given the questions it raises about his ability to push things through going forward.

"That seemed to have a bit of a knock-on effect, a bit of a risk-off scenario was played out initially," he said.

However, it "changed course" on the signing of the agreements between China and New Zealand, given the fiscal and trade benefits.

The Chinese premier, who is leading a delegation of senior ministers, government officials and businesspeople, met Mr English at Premier House in Wellington on Monday.

At the end of the meeting, Mr English said official talks to upgrade the existing FTA between the nations will start on April 25 with a goal of building on the deal that's seen two-way trade triple to $23 billion since it came into force in 2008.

The meeting also saw 21 other agreements signed, including a six-month trial for 10 local meat processors to sell chilled meat to China for the first time.

The announcement "nudged things up a bit, in particular against the US dollar and the Aussie," said Mr Ive.

The kiwi dollar was at 56.23 British pence from 56.27 pence on Friday in the US while it gained to A92.34c from 92.14c. It fell to 77.73 yen from 78.16 yen and rose to 4.8407 yuan from 4.8362 yuan. It slipped to 64.94 euro cents from 65.06 cents.

image beaconimage beaconimage beacon