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

 

Final Frontier: Rocket Lab And NASA Sign Commercial Space Launch Agreement

Rocket Lab has signed a Commercial Space Launch Act Agreement with the National Aeronautics and Space Administration (NASA). The agreement enables Rocket Lab to use NASA resources - including personnel, facilities and equipment - for launch and reentry efforts. More>>

ALSO:

Scoop Business: Wheeler Downplays Scope For ‘Large’ Rates Fall

Reserve Bank governor Graeme Wheeler says some market commentators are predicting further declines in interest rates that would only make sense for an economy in recession, although some easing is likely to be needed to maintain New Zealand’s economic growth. More>>

ALSO:

Ruataniwha Dam: Consent Conditions Could Mean Reduced Intensity

Legal advice sought by the Hawke’s Bay Regional Council on the Ruataniwha Dam consent conditions has confirmed that farmers who sign up to take water from the dam could be required to reduce the intensity of their farming operation to meet the catchment’s strict nitrogen limit. More>>

Health And Safety: Bill Now Sees Rules Relaxed For Small Businesses

Health and safety law reform sparked by the Pike River coalmine disaster has been reported back from the industrial relations select committee with weakened requirements on small businesses to appoint health and safety representatives and committees. More>>

ALSO:

Bearing Fruit: Annual Fruit Exports Hit $2 Billion For First Time

The value of fruit exported rose 20 percent (up $330 million) for the June 2015 year when compared with the year ended June 2014. Both higher prices and a greater quantity of exports (up 9.0 percent) contributed to the overall rise. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news