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

 

NZ dollar weakens vs. Australian dollar on rate differential

NZ dollar weakens vs. Australian dollar on view of rates differential

Nov. 9 (BusinessDesk) – The New Zealand dollar fell to a five-week low against its Australian counterpart as rising unemployment at home and stronger job prospects across the Tasman stoked talk the gap in interest rates won’t narrow any time soon.

The New Zealand dollar fell to 81.57 US cents from 81.67 cents at 5pm in Wellington yesterday. The kiwi fell to 78.22 Australian cents, near the lowest since Sept. 6, from 78.49 cents.

New Zealand's unemployment rate unexpectedly rose to 7.3 percent in the third quarter, while in Australia, the economy added 10,700 jobs last month, beating expectations. A weak jobs market gives Reserve Bank governor Graeme Wheeler more scope to cut the official cash rate from a record low 2.5 percent, widening the gap with Australia’s 3.25 percent rate.

“The employment figures were a bit of a shock and increase the odds of an interest rate cut in New Zealand,” said Dan Bell, currency strategist at HiFX. Wheeler is more likely, though, to try to talk rates down while there’s still a prospect the RBA will actually cut rates, he said.

Stocks fell overnight, with the Standard & Poor’s 500 Index down 0.8 percent, amid more gloom from Europe, where the central bank kept its key rate unchanged and said there are no signs of a pickup in economic growth.

Weak stocks mean “it’s looking like more downside (for the kiwi) over the next 24 hours,” Bell said.

Still, figures from the Real Estate Institute, showing house sales jumped by almost a third in October from a year earlier and set a new record median house price of $380,000, suggest there are still signs of life in the domestic economy even as the dole queue grows.

The trade-weighted index fell to 72.98 from 73.11 and the kiwi dropped to 64.74 yen from 65.13 yen.

The kiwi traded at 63.97 euro cents from 63.99 cents and was at 51.05 British pence from 51.07 pence.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Testing And Decontamination: New Standard On Meth Residue

Standards New Zealand has today released NZS 8510:2017 Testing and decontamination of methamphetamine-contaminated properties ... More>>

ALSO:

Mince, Etc: US Food Poisoning Lawyer At Conference

As New Zealand chefs, food experts, and MPI debate what constitutes a cooked beef burger, leading US food safety litigator Bill Marler, who made his name prosecuting the burger company responsible for a major E. coli outbreak, is keynote speaker at the Food Integrity Conference. More>>

ALSO:

Petya: New Ransomware Campaign Hits Worldwide

A new ransomware campaign known as Petya is affecting computer networks using Microsoft Windows. It was first seen affecting systems in the Ukraine, but is quickly spreading across other computer networks in Europe. More>>

ALSO:

Skodafone Goneski: Sky TV, Vodafone Drop $3.44 Billion Merger Plan

Sky Network Television and Vodafone New Zealand have terminated their merger agreement which aimed to create the country's largest telecommunications and media group, and have withdrawn an appeal against the Commerce Commission's rejection of the plan. More>>

Quake Insurance: Reforms To EQC Act Announced

· Increasing the monetary cap from $100,000 (plus GST) to $150,000 (plus GST) for EQC building cover.
· Clarifying EQC land cover is for natural disaster damage that directly affects the insured residence or access to it... More>>

ALSO: