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

 

Science: Hookworm Discovery At Malaghan Institute

Professor Graham Le Gros has led a team which has stimulated both innate and memory responses to the parasite, discovering along the way the unexpected behaviour of one particular immune cell, in Hookworm, one of the world’s most devastating tropical ... More>>

Business: Provinces Urged To Make Full Use Of New Air Services

Provincial New Zealand has been urged to use new air services to Auckland or risk losing them either partially or completely. The stark warning was issued today by Far North mayor John Carter at a ceremony at Kaitaia airport to mark the final Air ... More>>

Mobile: 2degrees To Credit All Calls And SMS To Nepal

In the wake of the devastating earthquake in Nepal in the weekend, 2degrees will be crediting all calls and SMS messages made to mobiles and landlines in Nepal from Friday 24th April until midnight Wednesday 29th April. More>>

Scoop Business: Alex Swney Pleads Guilty To $2.5M Fraud Charge

Alex Swney, former chief executive of the Auckland city centre business association Heart of the City, has pleaded guilty to dishonestly using documents to obtain $2.5 million. More>>

ALSO:

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Scoop Business: NZ Broadcasters Launch Battle Against Global Mode ISPs

New Zealand broadcasters have confirmed they’ve launched legal proceedings against internet service providers who give customers’ access to “global mode”, which allows customers access to offshore online content, claiming it breaches the local content providers’ copyright. More>>

ALSO:

Sanford: Closure Of Christchurch Mussel Processing Plant Confirmed

The decision comes after a period of consultation with the 232 staff employed at the Riccarton site, who were told on 9 April that Sanford was considering the future of mussel processing in Christchurch. Recent weather patterns had impacted on natural spat (offspring) supply... More>>

ALSO:

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news