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

 


NZ dollar falls as US jobs figures point to US pickup

NZ dollar falls as upbeat US jobs figures, Fed minutes fuel optimism on American recovery

By Paul McBeth

Jan. 9 (BusinessDesk) - The New Zealand dollar fell after better than US jobs figures and minutes to the last Federal Reserve policy meeting stoked optimism over the recovery in the world’s biggest economy, and fuelled expectations the US central bank may withdraw stimulus faster than anticipated.

The kiwi fell to 82.54 US cents at 5pm in Wellington from 82.86 cents at 8am and 82.88 cents yesterday. The trade-weighted index declined to 78.29 from 78.50 yesterday.

The ADP private payrolls report showed US employers added 238,000 payrolls in December ahead of official government figures on Friday in Washington. That supported the greenback, which got another boost after the Fed minutes allayed concerns the central bank officials might be divided over the pace of slowing down their asset purchase programme. At that meeting the Fed trimmed its monthly quantitative easing to US$75 billion this month from US$85 billion.

“The good data raises expectations for Friday, which in turn raises expectations for even faster tapering,” said Imre Speizer, market strategist at Westpac Banking Corp in Auckland. “If we get a decent payrolls print (on Friday) you can say goodbye to 84 US cents for the next few weeks at least,” he said, referring to the kiwi dollar.

New Zealand government figures showed building consents rose 11 percent in November from a month earlier, driven by new apartment developments, as the property market looks to build up supply which has been lagging demand over the past year.

Still, that failed to spur support for the kiwi, which was also put under pressure by news New Zealand’s biggest company, Fonterra Cooperative Group, faced legal action from France’s Danone over its false food safety scare last year. Fonterra is the world’s biggest dairy exporter, and milk products account for about 29 percent of New Zealand’s exports.

The kiwi was little changed at 60.77 euro cents at 5pm in Wellington from 60.83 cents yesterday, ahead of the European Central Bank meeting in Brussels on Wednesday. Investors are looking to see whether the ECB may hint at further stimulus to reignite a stalling economic recovery.

The Bank of England will also review monetary policy, but isn’t expected to make any changes. The local currency fell to 50.15 British pence from 50.53 pence yesterday.

The kiwi fell to 86.50 yen at 5pm in Wellington from 86.93 yen yesterday, and traded at 92.92 Australian cents from 92.88 cents.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Half Full: Fonterra Raises Forecast Payout As Global Supply Shrinks

Fonterra Cooperative Group, the dairy processor which will announce annual earnings tomorrow, hiked its forecast payout to farmers by 50 cents per kilogram of milk solids as global supply continues to decline, helping prop up dairy prices. More>>

ALSO:

Results:

Meat Trade: Silver Fern Farms Gets Green Light For Shanghai Maling Deal

The government has given the green light for China's Shanghai Maling Aquarius to acquire half of Silver Fern Farms, New Zealand's biggest meat company, with ministers satisfied it will deliver "substantial and identifiable benefit". More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news