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


NZ dollar advances as US employment data disappoints

NZ dollar advances as US employment data disappoints, risk appetite returns

By Tina Morrison

Feb. 10 (BusinessDesk) – The New Zealand dollar advanced after a key US employment report pointed to a weaker economy than expected and as risk appetite returned to the market.

The kiwi touched 84.95 yen over the weekend, its highest level this year, and was trading at 84.81 yen at 8am in Wellington from 83.89 yen at 5pm on Friday. The local currency was at 82.83 US cents, from 82.90 cents at the New York close and 82.27 cents at 5pm in Wellington on Friday.

Investors are looking ahead to tomorrow night’s testimony by new Federal Reserve Chair Janet Yellen amid speculation it may be more dovish than previously anticipated after a report in the US on Friday showed the US added 113,000 nonfarm payrolls in January, less than the 185,000 expected. Meantime, concern about emerging markets is abating, turning investor attention to risk-sensitive currencies such as the kiwi and away from safe havens like the yen.

“The NZD/USD has benefitted from a general improvement in risk appetite, and more specifically from a soft USD on Friday night,” Kymberly Martin, markets strategist at Bank of New Zealand, said in a note. “Generally, risk appetite has begun to return to markets as emerging market ructions have moved out of the spotlight as emerging markets have stabilised. This has helped appetite for ‘risk sensitive’ currencies such as the NZD return, at the expense of currencies such as the JPY.”

Today, Japanese reports are due on the current account and consumer confidence.

The New Zealand dollar rose to 92.39 Australian cents from 91.95 cents in Wellington on Friday ahead of tomorrow’s report on Australian business confidence.

The local currency advanced to 60.77 euro cents from 60.52 cents on Friday, and increased to 50.47 British pence from 50.39 pence. The trade-weighted index rose to 78.16 from 77.61 last week.


© 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