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

 


NZ dollar falls; drop in jobless masks weak labour market

NZ dollar falls; drop in jobless rate masks weak labour market

By Paul McBeth

Feb. 7 (BusinessDesk) - The New Zealand fell after a fall in the headline unemployment rate masked underlying figures showing a weak labour market, and spooking investors who have been upbeat about the local economic recovery.

The kiwi fell to 83.52 US cents at 5pm in Wellington from 84.17 cents at 8am and 84.45 cents yesterday. The trade-weighted index dropped to 75.68 from 76.38 yesterday.

New Zealand's unemployment rate fell to 6.9 percent in the December quarter from a 13-year high in the September period, as an increasing number of people left the labour force. The participation rate fell to 67.2 percent, its lowest level in almost nine years and employment shrank 1 percent in the three months ended Dec. 31. Economists had been expecting perkier numbers as businesses ramp up hiring in the face of the Canterbury rebuild.

"The market was in the mood to play up the negatives in the employment release and that took the gloss of the currency," said Mike Jones, currency strategist at Bank of New Zealand in Wellington. "The labour market numbers provided food for thought for the kiwi dollar."

The local figures came out before Australian employment data, which showed the unemployment rate held at 5.4 percent across the Tasman as the number of jobs grew by 10,400 in December. While the headline figure is better across the Ditch, Australia's participation rate of 65 percent is below New Zealand's. The kiwi dollar fell to 80.99 Australian cents from 81.55 cents yesterday.

The fortunes of the trans-Tasman neighbours has been shifting in recent months, with a peak in Australia's mining boom coming in view and New Zealand's $30 billion-plus reconstruction effort in Canterbury gathering momentum.

That's seen the respective central banks in different phases, the Reserve Bank of Australia seen as likely to cut rates next month, while New Zealand's central bank on hold with its next move expected to be a hike.

The local currency dropped to 77.99 yen from 79.20 yen yesterday, and declined to 61.84 euro cents from 62.20 cents. The kiwi fell to 53.37 British pence from 53.94 pence yesterday.

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Equity Crowd Funding Carries Risks, High Failure Rate

Equity crowd funding, which became legal in New Zealand this month, comes with a high risk of failure based on figures showing existing forays into social capital have a success rate of less than 50 percent, one new entrant says. More>>

ALSO:

Scoop Business: NZ Migration Rises To 11-Year High In March

The country gained a seasonally adjusted 3,800 net new migrants in March, the most since February 2003, said Statistics New Zealand. A net 400 people left for Australia in March, down from 600 in February, according to seasonally adjusted figures. More>>

ALSO:

Hugh Pavletich: New Zealand’s Bubble Economy Is Vulnerable

The recent Forbes e-edition article by Jesse Colombo assesses the New Zealand economy “ 12 Reasons Why New Zealand's Economic Bubble Will End In Disaster ”, seems to have created quite a stir, creating extensive media coverage in New Zealand. More>>

ALSO:

Thursday Market Close: Genesis Debut Sparks Energy Rally

New Zealand stock rose after shares in the partially privatised Genesis Energy soared as much as 18 percent in its debut listing on the NZX, buoying other listed energy companies in the process. Meridian Energy, MightyRiverPower, Contact Energy and TrustPower paced gains. More>>

ALSO:

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Houses (& Tobacco) Lead Inflation: CPI Up 0.3% In March Quarter

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays. More>>

ALSO:

Notoriously Reliable Predictions: Budget To Show Rise In Full-Time Income To 2018: English

This year’s Budget will forecast wage increases through to 2018 amounting to a $10,500 a year increase in average full time earnings over six years to $62,200 a year, says Finance Minister Bill English in a speech urging voters not to “put all of this at risk” by changing the government. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news