Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Kiwi falls against Aussie on strong employment data

NZ dollar falls against Aussie on strong employment data across the Tasman

By Hannah Lynch

April 12 (BusinessDesk) – The New Zealand dollar fell almost half a cent against the Australian dollar after data showed employers added almost seven times more workers than expected in March.

The New Zealand dollar fell to 78.97 Australian cents at 5pm from 79.31 at 8am. It traded at 79.35 cents at 5pm yesterday. The kiwi rose as high as 81.91 US cents immediately after the data, from 81.73 cents at 8am. The currency traded at 81.95 cents at 5pm down from 82.01 cents at 5pm yesterday.

Australian payrolls rose by 44,000, according to the statistics bureau in Sydney. That compares with a median estimate of 6,500 in a Bloomberg survey, while the jobless rate held at 5.2 percent, compared with expectations for a rise to 5.3 percent. The data helped to ease speculation that the Reserve Bank of Australia will cut interest rates at its May meeting. The rate remained unchanged at its March meeting on 4.25 percent.

“It was an absolute boomer – they were much stronger than expected and naturally the New Zealand dollar is weaker against the Aussie,” said Dan Bell, currency strategist at HiFX. “The kiwi/US has held up well throughout the afternoon as well before coming under some profit taking.”

In the US, the Federal Reserve’s vice chairman Janet Yellen endorsed the central bank’s “highly accommodative” policy, which has been boosting demand for high-yielding currencies such as the kiwi. Investors’ risk appetite gained momentum last week after a US Labor Department report revived speculation the Fed will embark on another round of quantitative easing.

“It again reiterates the view of the Fed chairmen (Ben Bernanke) – the idea is still being dangled and that will be a negative for the US dollar,” Bell said.

The US’s Michigan consumer confidence survey is set for release tomorrow. New Zealand has no more significant data set for release this week.

The New Zealand dollar was unchanged on 62.39 euro cents from 5pm yesterday and was little-changed on 51.42 British pence from 51.44 pence. The kiwi rose to 66.35 yen from 65.98 yen.

The trade weighted index was little changed on 73.05 from 73.01.


© Scoop Media

Business Headlines | Sci-Tech Headlines


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Health: New Zealand's First ‘No Sugary Drinks’ Logo Unveiled

New Zealand’s first “no sugary drinks logo” has been unveiled at an event in Wellington... It will empower communities around New Zealand to lift their health and wellbeing and send a clear message about the damage caused by too much sugar in our diets. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news