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

 


NZ dollar gains as weak US jobs report erodes optimism

NZ dollar gains as weak US jobs report erodes optimism over Fed tapering plan

By Paul McBeth

Jan. 13 (BusinessDesk) - The New Zealand gained in local trading after weaker than expected employment figures in the US eroded optimism the Federal Reserve will accelerate plans to scale back its monetary stimulus.

The kiwi traded at 83.31 US cents at 5pm in Wellington from 82.99 cents at 8am, when it was unchanged from the close of trading in New York last week. The trade-weighted index increased to 78.41 from 78.21 from Friday in New York.

The Japanese yen strengthened in Asian trading as investors grew weary of the US dollar after official figures showed the world’s biggest economy added 74,000 jobs last month, less than half the number expected by economists. The yen was recently at 103.44 per US dollar, having touched 103.24, the strongest in four weeks, as investors gauge how much of an impact the extreme weather had on the US employment data.

“The report was obviously weather-related, but the series always seems to have some problems,” said Tim Kelleher, head of institutional FX sales NZ at ASB Institutional in Auckland. “The kiwi’s been holding up well ahead of the RBNZ (Reserve Bank of New Zealand)” policy meeting at the end of the month, he said.

Investors will get a clearer steer on the US economy throughout the week, with retail sales figures, the Fed’s beige book regional economic outlook, and manufacturing among the reports due for release.

ASB’s Kelleher said the local currency might consolidate around 83 US cents, and could push up towards 83.50/84 cents this week.

A BusinessDesk survey of nine traders and strategists predicts the local currency may trade between 82 US cents and 84.30 cents this week. Eight predict the currency will gain, and one expects it to decline.

The local currency fell to 86.20 yen at 5pm in Wellington from 86.41 yen on Friday in New York and was almost unchanged at 92.22 Australian cents from 92.21 cents. It rose to 60.90 euro cents from 60.70 cents last week and traded at 50.48 British pence from 50.34 pence.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Fruit & Veg Crackdown: Auckland Fruit Fly Find Under Investigation

The Ministry for Primary Industries (MPI) is investigating a find of a single male Queensland fruit fly in a surveillance trap in the Auckland suburb of Grey Lynn... MPI has placed legal controls on the movement of fruit and some vegetables outside of a defined circular area which extends 1.5km from where the fly was trapped in Grey Lynn. More>>

ALSO:

Scoop Business: Westpac NZ Reaches $2.97M Swaps Settlement

Westpac Banking Corp’s New Zealand unit has agreed to pay $2.97 million in a settlement with the Commerce Commission over the way the bank sold interest rate swaps to farmers between 2005 and 2012. More>>

ALSO:

Going Dutch: Fonterra Kicks Off $144M Partnership With Dutch Cheese Maker

Fonterra Co-operative Group, the world’s largest dairy exporter, has commissioned a new dairy ingredients plant in Heerenveen, in the north of the Netherlands, its first wholly-owned and operated ingredients plant in Europe. More>>

ALSO:

Scoop Business: NZ Retail Sales Beat Estimates

New Zealand retail sales rose more than expected in the fourth quarter, led by vehicle-related transactions, food and beverages, adding to evidence that cheap credit and a growing jobs market are encouraging consumers to spend. More>>

ALSO:

Delivery Cuts Go Ahead: 'Government Money Grab' From NZ Post

"It's a money grab by the Government as the shareholder of New Zealand Post" says Postal Workers Union advocate Graeme Clarke about the changes announced by NZ Post. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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