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

 


NZ dollar gains after weak US jobs figures

NZ dollar gains after weak US jobs figures weigh on tapering expectations

By Paul McBeth

Jan. 13 (BusinessDesk) - The New Zealand dollar gained after weaker than expected US employment figures on Friday sapped optimism over the pace of the Federal Reserve’s plans to scale back its asset purchase programme.

The kiwi traded at 82.99 US cents at 8am in Wellington, unchanged from the New York close and up from 82.46 cents at 5pm in Wellington. The trade-weighted index edged up to 78.23 from 78.14 on Friday in Wellington.

The Dollar Index, a measure of the greenback against a basket of currencies, dropped 0.9 percent after US government data showed the world’s biggest economy added 74,000 jobs last month, more than half the 194,000 new jobs expected by analysts. That raised fears the Fed won’t withdraw its monetary stimulus as fast as anticipated, though St Louis Fed president James Bullard said he would be “disinclined to react to one month’s number.”

“It was a very disappointing jobs number in the States and the markets reacted strongly to the headline with the US dollar and interest rates much lower,” said Imre Speizer, market strategist at Westpac Banking Corp in Auckland. “It the kiwi breaks above 83 US cents, that would be meaningful – that’s where it’s been stuck.”

Westpac’s Speizer said other US economic data has been “pretty decent” and the weak employment figures may not cause much more weakness in the greenback if traders believe the Fed’s plans aren’t stalled by the news.

With no local data scheduled for release today, investors will be trading on headlines and sentiment. The New Zealand Institute of Economic Research’s quarterly survey of business opinion will come out tomorrow, and is expected to show more optimism among the country’s firms.

The local currency fell to 86.26 yen at 8am from 86.50 yen on Friday in Wellington and fell to 92.11 Australian cents from 92.63 cents. It was little changed at 60.67 euro cents from 60.57 cents last week and gained to 50.34 British pence from 50.04 pence.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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