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

 


NZ dollar falls ahead of US jobs as US economy back in focus

NZ dollar falls ahead of US jobs as American economy comes back into focus

By Paul McBeth

Oct. 22 (BusinessDesk) - The New Zealand dollar fell in local trading ahead of the release of US jobs data which was delayed by political jostling over the Federal budget as growth in the world’s biggest economy comes back into focus.

The kiwi fell to 84.42 US cents at 5pm in Wellington from 84.55 cents at 8am and 84.88 cents yesterday. The trade-weighted index declined to 77.86 from 78.18 yesterday.

Investors have renewed their focus on the US economy after legislators last week cut a deal approving the Federal budget and lifting the debt ceiling until early next year. The US probably added 180,000 jobs and the unemployment rate held at 7.3 percent last month, according to a Bloomberg survey of economists. At stake is whether the partial government shutdown slowed growth so much as to push out the Federal Reserve’s planned tapering of its US$85 billion a month asset purchase programme.

“The chatter that people have been focusing on is what if get a number (of jobs added) that’s 200 (thousand)-plus,” said Chris Tennent Brown, FX economist at Commonwealth Bank of Australia in Sydney. “Given how much the US dollar has come down, maybe people are starting to think it’s a little overdone if we get data showing the US economy is actually going okay.”

The Dollar Index, a measure of the greenback against a basket of currencies rose to 79.79 at 5pm in Wellington from 79.69 yesterday. The greenback dropped as much as 3.6 percent from early September when the Fed delayed tapering its asset purchase programme, and during the US political impasse over the budget and debt ceiling.

CBA’s Tennent-Brown said the kiwi didn’t have enough evidence supporting a push above 85 US cents, and that today’s decline wasn’t surprising.

Australian data tomorrow is expected to show an annual pace of inflation of 1.8 percent in the third quarter, below the Reserve Bank of Australia’s target band of 2 and 3 percent, and slowing from a pace of 2.4 percent in the June quarter. The New Zealand dollar fell to 87.50 Australian cents from 87.83 cents yesterday.

The kiwi slipped to 83.02 yen from 83.13 yen yesterday and dropped to 61.78 euro cents from 62.07 cents. It declined to 52.36 British pence from 52.52 pence yesterday.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Warming: Warming Signs From State Of Climate Report

Climate data from air, land, sea and ice in 2013 'reflect trends of a warming planet' -- says the latest State of the Climate report, launched by U.S. and New Zealand scientists. More>>

ALSO:

Scoop Business: Embrace Falling Home Affordability, Says NZIER

Despair over the inability to afford a house is misplaced and should be embraced as an opportunity to invest in more wealth-creating activity, says the principal economist at the New Zealand Institute of Economic Research, Shamubeel Eaqub. More>>

Productivity Commission: NZ Regulation Not Keeping Pace

New Zealand regulators often have to work with out-of-date legislation, quality checks are under strain, and regulatory workers need better training and development. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news