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

 

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Scoop Business: NZ-Korea FTA Signed Amid Spying, Lost Sovereignty Claims

A long-awaited free trade agreement between New Zealand and South Korea has been signed in Seoul by Prime Minister John Key and the Korean president, Park Geun-hye. More>>

ALSO:

PM Visit: NZ And Viet Nam Agree Ambitious Trade Target

New Zealand and Viet Nam have agreed an ambitious target of doubling two-way goods and service trade to around $2.2 billion by 2020, Prime Minister John Key has announced. More>>

ALSO:

Scoop Business: NZ Economy Grows 0.8% In Fourth Quarter

The New Zealand economy expanded in the fourth quarter as tourists drove growth in retailing and accommodation, and property sales increased demand for real estate services. More>>

ALSO:

Scoop Business: RBNZ’s Wheeler Keeps OCR On Hold, No Rate Hikes Ahead

The Reserve Bank has removed the prospect of future interest rate hikes from its forecast horizon as a strong kiwi dollar and cheap oil hold down inflation, and the central bank ponders whether to lower its assessment of where “neutral” interest rates should be. The kiwi dollar gained. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news