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

 


NZ dollar slips as key US jobs report tipped to improve

NZ dollar slips as key US jobs report tipped to beat expectations

By Tina Morrison

Jan. 10 (BusinessDesk) – The New Zealand dollar slipped ahead of a key US employment report later today which analysts are tipping to be better than expected, bolstering expectations the Federal Reserve will continue to pull back its monetary stimulus this year.

The kiwi weakened to 82.43 US cents at 8am in Wellington from 82.57 cents at 5pm yesterday. The trade-weighted index dropped to 78.16 from 78.30 yesterday.

Investors are awaiting non-farm payrolls employment figures in the US today, buoyed by better than expected jobs figures in this week’s ADP Research Institute report. Confirmation that employment is picking up in the world’s largest economy will likely cement expectations that the Fed will continue to reduce its monetary stimulus, after cutting the monthly bond buying programme by US$10 billion this month to US$75 billion.

“Today’s focus is on US non-farm payrolls with ANZ expecting an above consensus number,” ANZ Bank New Zealand strategist Carrick Lucas and senior FX strategist Sam Tuck said in a note. “Should this occur, NZD/USD could remain under downside pressure.”

ANZ expects the kiwi to trade between 82.10 US cents and 82.80 cents today.

Analysts are expecting the US non-farm payrolls data to show 196,000 jobs were created in December, according to Reuters polls. ANZ expects 205,000 new jobs with the unemployment rate to tick up to 7.1 percent from 7 percent due to a modest lift in the participation rate.

Traders will also be eyeing Chinese trade figures this afternoon for clues as to how Asia’s largest economy is tracking, ANZ said.

The New Zealand dollar slipped to 60.68 euro cents at 8am from 60.79 cents yesterday having climbed as high as 60.98 cents earlier this morning after European Central Bank president Mario Draghi left interest rates at record lows and suggested there may be downside risks to inflation

The local currency dropped to 50.08 British pence from 50.17 pence yesterday, touching a high of 50.27 pence overnight after the Bank of England kept its key policy settings unchanged following its monthly meeting.

The kiwi fell to 86.37 yen from 86.55 yen yesterday and weakened to 92.75 Australian cents from 92.90 cents ahead of data on new home sales today.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Inequality: Top 10% Of Housholds Have Half Of Total Net Worth

The average New Zealand household was worth $289,000 in the year to June 2015, Statistics New Zealand said today. However wealth was not evenly distributed, with the top 10 percent accounting for around half of total wealth. In contrast, the bottom 40 percent held 3 percent of total wealth. More>>

ALSO:

What Winter? Temperature Records Set For June 20-22

The days around the winter soltice produced a number of notably warm tempertaures. More>>

Conservation Deal: New Kākāpō Recovery Partnership Welcomed

Conservation Minister Maggie Barry says the new kakapo recovery partnership between DOC and Meridian Energy is great news for efforts to save one of New Zealand’s most beloved birds. More>>

ALSO:

Tech Sector Report: Joyce Warns Asian Tech Investors View NZ As Hobbits And Food

Speaking in Wellington at the launch of a report showcasing the value of the technology sector to the New Zealand economy, Joyce said more had to be done to tell the country's technology stories overseas. More>>

ALSO:

Mediaglommeration: APN Gets OIO Approval For Demerger Plan

APN News & Media has received Overseas Investment Office approval for its plan to split out its NZME unit ahead of a potential merger with rival Fairfax Media's New Zealand operations. More>>

New Paper: Ninety-Day Trial Period Has No Impact On Firms' Hiring

The introduction of a 90-day trial period has had no impact on hiring by New Zealand companies although they are now in widespread use, according to researchers at Motu Economic and Public Policy Research. More>>

ALSO:

Corrections: Serco Exits Equity Stake, Remains As Operator

Serco has sold its equity stake in the company that holds the contract to design, build and run Wiri Prison in South Auckland but continues as sub-contractor to operate the facility. More>>

GDP: NZ Economy Grows Faster-Than-Forecast 0.7%

New Zealand's economy grew at a faster pace than expected in the first quarter of 2016 as construction expanded at the quickest rate in two years. The kiwi dollar jumped after the data was released. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news