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

 

What Winter? Temperature Records Set For June 20-22

The days around the winter soltice produced a number of notably warm tempertaures. More>>

Conservation Deal: New Kākāpō Recovery Partnership Welcomed

Conservation Minister Maggie Barry says the new kakapo recovery partnership between DOC and Meridian Energy is great news for efforts to save one of New Zealand’s most beloved birds. More>>

ALSO:

Tech Sector Report: Joyce Warns Asian Tech Investors View NZ As Hobbits And Food

Speaking in Wellington at the launch of a report showcasing the value of the technology sector to the New Zealand economy, Joyce said more had to be done to tell the country's technology stories overseas. More>>

ALSO:

Mediaglommeration: APN Gets OIO Approval For Demerger Plan

APN News & Media has received Overseas Investment Office approval for its plan to split out its NZME unit ahead of a potential merger with rival Fairfax Media's New Zealand operations. More>>

New Paper: Ninety-Day Trial Period Has No Impact On Firms' Hiring

The introduction of a 90-day trial period has had no impact on hiring by New Zealand companies although they are now in widespread use, according to researchers at Motu Economic and Public Policy Research. More>>

ALSO:

Corrections: Serco Exits Equity Stake, Remains As Operator

Serco has sold its equity stake in the company that holds the contract to design, build and run Wiri Prison in South Auckland but continues as sub-contractor to operate the facility. More>>

GDP: NZ Economy Grows Faster-Than-Forecast 0.7%

New Zealand's economy grew at a faster pace than expected in the first quarter of 2016 as construction expanded at the quickest rate in two years. The kiwi dollar jumped after the data was released. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news