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


NZ dollar little changed after RBA lifts growth forecast

NZ dollar little changed after RBA lifts growth forecast, US jobs data looms

By Paul McBeth

Feb. 7 (BusinessDesk) - The New Zealand dollar was little changed after the Reserve Bank of Australia lifted its growth forecast having dropped its easing bias this week, and ahead of US employment figures.

The kiwi traded at 82.26 US cents at 5pm in Wellington from 82.68 cents at 8am and 82.38 cents yesterday. The trade-weighted index was 77.61 from 77.54 yesterday.

The RBA raised its forecast for growth and inflation this year having this week removed the chance of another rate cut as the Australian economy shows more lift in it than previously thought. The Australasian currencies had already found support from a lift in investors’ appetite for risk-sensitive assets as fears over emerging markets subsided.

The New Zealand dollar was little changed at 91.95 Australian cents from 91.87 cents yesterday, and is heading for a 0.4 percent weekly decline from 92.32 cents last week. Four of eight traders and strategists surveyed on Monday predicted it would decline this week, one picked a gain, and three expected it to remain stable.

Traders are looking ahead to US non-farm payrolls on Friday in Washington, overnight local time, which are expected to show 180,000 jobs were added to the world’s biggest economy in January after bitter December weather sapped employment growth. US employment is seen as a key plank in the Federal Reserve’s plans to slow down its monetary stimulus.

“Higher employment in the US should open the door for US interest rates to go higher and support the US dollar,” said Martin Rudings, senior adviser at OMF in Wellington. “the kiwi and the Aussie should come off, but not as bad as emerging markets.”

The kiwi is heading for a 1.7 percent gain against the greenback this week from 80.85 cents at the close of trading in New York last week. A BusinessDesk survey on Monday of nine traders and strategists predicted it would trade between 77 US cents and 82.80 cents this week. Four expected it to advance, two expected a decline, and three said it would remain largely unchanged.

The local currency fell to 60.54 euro cents from 60.90 cents yesterday, after the European Central Bank yesterday kept its benchmark interest rate unchanged and the bank’s president Mario Draghi said there is no euro zone deflation problem.

The kiwi edged down to 50.40 British pence from 50.51 pence yesterday after the Bank of England kept rates on hold. The New Zealand dollar gained to 83.89 yen from 83.59 yen yesterday.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Banks: Westpac Keeps Core Government Transactions Contract

The local arm of Westpac Banking Corp has kept its contract with the New Zealand government to provide core transactions, but will have to share peripheral services with its rivals. More>>


Science Investment Plan: Universities Welcome Statement

Universities New Zealand has welcomed the National Statement of Science Investment released by the Government today... this is a critical document as it sets out the Government’s ten-year strategic direction that will guide future investment in New Zealand’s science system. More>>


Scouring: Cavalier Merger Would Extract 'Monopoly Rents' - Godfrey Hirst

A merger of Cavalier Wool Holdings and New Zealand Wool Services International's two wool scouring operations would create a monopoly, says carpet maker Godfrey Hirst. The Commerce Commission on Friday released its second draft determination on the merger, maintaining its view that the public benefits would outweigh the loss of competition. More>>


Scoop Review Of Books: She Means Business

As Foreman says in her conclusion, this is a business book. It opens with a brief biographical section followed by a collection of interesting tips for entrepreneurs... More>>


Hourly Wage Gap Grows: Gender Pay Gap Still Fixed At Fourteen Percent

“The totally unchanged pay gap is a slap in the face for women, families and the economy,” says Coalition spokesperson, Angela McLeod. Even worse, Māori and Pacific women face an outrageous pay gap of 28% and 33% when compared with the pay packets of Pākehā men. More>>


Housing: English On Housing Affordability And The Economy

"Long lead times in the planning process tend to drive prices higher in the upswing of the housing cycle. And those lead times increase the risk that eight years later, when additional supply arrives, the demand shock that spurred the additional supply has reversed. The resulting excess supply could produce a price crash..." More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news