Back
11 May 2015
China a concern for New Zealand - ANZ
FXStreet (Guatemala) - Sam Tuck, analyst at Australia and New Zealand Banking Group Limited (ANZ) noted that China remains a significant concern for New Zealand, as their largest trading partner.
Key Quotes:
"Over the weekend the PBoC cut both the deposit and lending rate by 25bps, and while the rate cut is in line with ANZ expectations, it reflects that China has intensified easing measures to counter economic slowdown and rising deflation risks."
"The April trade data – particularly the continued contraction in exports – suggest the economy still faces strong downward pressure, and anecdotal evidence suggests Chinese demand for NZ products is muted."
"This leads us to caution against any positive interpretation for the NZD from recent easing measures. It would take a sustained increase in Chinese demand for NZ exports to change our view that Chinese stimulus is not good news for NZD."
Key Quotes:
"Over the weekend the PBoC cut both the deposit and lending rate by 25bps, and while the rate cut is in line with ANZ expectations, it reflects that China has intensified easing measures to counter economic slowdown and rising deflation risks."
"The April trade data – particularly the continued contraction in exports – suggest the economy still faces strong downward pressure, and anecdotal evidence suggests Chinese demand for NZ products is muted."
"This leads us to caution against any positive interpretation for the NZD from recent easing measures. It would take a sustained increase in Chinese demand for NZ exports to change our view that Chinese stimulus is not good news for NZD."