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

 

Half Empty: Fonterra's 2017 Opening Forecast Below Expectations

Fonterra Cooperative Group raised its forecast farmgate milk payout for next season by less than expected as the world's largest dairy exporter predicts lower prices will crimp production and supply will pick up. The New Zealand dollar fell. More>>

ALSO:

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news