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

 

Media: Julian Wilcox Leaves Māori TV

Māori Television has confirmed the resignation of Head of News and Production Julian Wilcox. Mr Maxwell acknowledged Mr Wilcox’s significant contribution to Māori Television since joining the organisation in 2004. More>>

ALSO:

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Auckland Outage: Power Mostly Restored Overnight

Vector wishes to advise that all but 324 customers have been restored overnight. These customers are spread throughout the network in small pockets. The main St Johns feeder was restored around midnight allowing most of the customers in all affected areas to have power this morning. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news