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

 


NZ dollar falls to two-month low vs. Aussie

NZ dollar falls to two-month low vs. Aussie as trans-Tasman labour markets diverge

By Paul McBeth

Nov. 8 (BusinessDesk) - The New Zealand dollar sank to a two-month low against its Australian counterpart after official figures painted a rosier jobs market across the Tasman as local unemployment rose to a 13-year high.

The kiwi fell to 78.46 Australian cents at 5pm in Wellington, the lowest since Sept. 13, from 79.07 cents yesterday. It dropped to 81.66 US cents from 82.57 cents at 8am and 82.54 cents yesterday.

New Zealand's unemployment unexpectedly rose half a percentage point to 7.3 percent in the September quarter, the highest rate of joblessness since 1999, according to Statistics New Zealand. That dashed expectations for a slight easing in the headline rate to 6.7 percent. Across the Tasman, Australia added 10,700 jobs last month, beating expectations and underlining the divide between the neighbouring nations.

"New Zealand's labour market report was terrible - there were no silver linings anywhere," said Joe Capurso, currency strategist at Commonwealth Bank of Australia in Sydney. "It raises the risk the RBNZ might have to do something."

The weak local labour figures come as international investors prepare for US Federal policymakers to figure out how to get around the US$600 billion fiscal cliff of tax hikes and spending cuts. Stocks on Wall Street plunged after President Barack Obama saw off rival Mitt Romney to keep the White House for a further four years.

"With markets increasingly focused on the fiscal cliff it's going to be bad for equities and for the Aussie and kiwi," Capurso said.

The divergent trans-Tasman labour markets haven't prompted CBA to change its view on the kiwi appreciating against the Australian dollar, with New Zealand's currency typically outperforming on the cross-rate during times of global uncertainty.

The kiwi fell to 64.04 euro cents from 64.31 cents and declined to 51.12 British pence from 51.5 pence. It fell to 65.20 yen from 66.17 yen yesterday, and the trade-weighted index dropped to 73.17 from 73.77.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: NZ Dollar Catches Breath After "Goldilocks" Slump

The New Zealand dollar edged up following its dramatic slump yesterday after the Reserve Bank confirmed speculation it intervened in the currency market last month and PM John Key suggested a “Goldilocks” level far lower than at present. More>>

ALSO:

Biosecurity: Kiwifruit Claim To Hold Officials Accountable For Psa

Kiwifruit growers have joined forces to hold Biosecurity NZ accountable in the courts for its negligence in allowing 2010’s Psa outbreak that devastated New Zealand’s kiwifruit industry and exports. Foundation claimants representing well ... More>>

ALSO:

Poison: Anglers Advised Not To Eat Trout In 1080 Areas

With the fishing season opening in just a few days (1 October 2014), anglers are being warned by the Department of Conservation(DOC) not to eat trout from pristine backcountry waters and their downstream catchments, where the department is conducting 1080 poisoning operations. More>>.

ALSO:

Quotas: MPI Swoop On Suspected Fraudulent Fishing Activity

Ministry for Primary Industries (MPI) compliance officers swooped on a Hawkes Bay fishing enterprise today to secure evidence in an investigation into suspected fraudulent activity... “The investigation involves activity throughout the commercial supply chain – catching, landing, processing and exporting.” More>>

ALSO:

Scoop Business: Fonterra Slashes 2015 Milk Payout, Earnings Tumble 76%

Fonterra Cooperative Group cut its forecast 2015 milk price payout by about 12 percent, citing weaker global dairy prices and said there is a risk of further declines given strong global milk production. More>>

ALSO:

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news