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

 


Kiwi gains vs. A$ as unemployment falls; US jobs data looms

NZ dollar gains vs. A$ as unemployment falls; US jobs data looms

By Paul McBeth

Feb. 5 (BusinessDesk) - The New Zealand dollar recovered ground against its trans-Tasman counterpart after falling unemployment firmed up expectations for a rate hike by the local central bank, after the Reserve Bank of Australia yesterday scotched the chance of another cut.

The kiwi rose to 92.28 Australian cents at 5pm in Wellington from 91.46 cents yesterday. It traded at 82.01 US cents at 5pm from 82.16 cents yesterday, holding its gain from 80.94 cents yesterday.

New Zealand’s unemployment rate fell 0.2 of a percentage point to 6 percent in the December quarter, with jobs growth more than twice the expected pace, spurred by gains in retail and hospitality. That’s the last piece of major data before Reserve Bank governor Graeme Wheeler reviews monetary policy in March, when he’s widely expected to embark on a tightening cycle of higher interest rates.

The kiwi dollar tumbled against its Australian counterpart yesterday when the RBA dropped its reference for further policy adjustments, instead saying rates will remain stable for some time, reducing the potential gap between trans-Tasman interest rates. The RBA will release its updated forecasts on Friday.

“The kiwi/Aussie bounced back on the jobs data, which was on expectations, no more, no less,” said Tim Kelleher, head of institutional FX sales NZ at ASB Institutional in Auckland. “The kiwi/Aussie came off a bit after the RBA came out and said things weren’t quite as bad.”

New Zealand markets are closed for the Waitangi Day holiday tomorrow, and ASB’s Kelleher said the kiwi will probably go sideways, trading between 81.50 US cents and 82.50 cents, ahead of US employment figures on Friday in Washington.

US private payrolls figures, seen as a pre-cursor for the official data, are scheduled for release on Wednesday in Washington.

The local currency climbed to 83.21 yen at 5pm from 81.91 yen yesterday, and gained to 60.68 euro cents from 59.91 cents. It advanced to 50.23 British pence from 49.66 pence. The trade-weighted index increased to 77.53 from 76.58.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Royal Society: Review Finds Community Water Fluoridation Safe And Effective

A review of the scientific evidence for and against the efficacy and safety of fluoridation of public water supplies has found that the levels of fluoridation used in New Zealand create no health risks and provide protection against tooth decay. More>>

ALSO:

Scoop Business: Croxley Calls Time On NZ Production In Face Of Cheap Imports

Croxley Stationery, whose stationery brands include Olympic, Warwick and Collins, plans to cease manufacturing in New Zealand because it has struggled to compete with lower-cost imports in a market where the printed word is giving way to electronic communications. More>>

ALSO:

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Igniting The Spark: Bringing The Digital Enabler To Life

Changing a name is, relatively speaking, the easy part of a re-invention. Changing a culture, getting all the ducks in a row, turning yourself inside-out to become customer-inspired is a much bigger challenge. More>>

ALSO:

Ebola And NZ: Targeted Screening At Airport But Risk Low

The risk of any cases of Ebola in New Zealand remains very low, but health and border authorities are well prepared... anyone arriving in New Zealand who in the last three weeks has visited countries affected will be screened for symptoms of the disease. More>>

ALSO:

Scoop Business: Brewer Seeking Crowd-Funding Cancels Shareholders’ Dividends

Shareholders in Renaissance Brewing company, the first business to seek equity through crowd-funding in New Zealand, have cancelled their claim on $147,000 of accumulated earnings “to make Renaissance a more attractive investment opportunity.” More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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