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

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news