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

 


Poor employment numbers rattle the Aussie Dollar

15:02 AEST, Thursday 13 February 2014

Poor employment numbers rattle the Aussie Dollar and keep stocks in limbo
By Betty Lam (Sales Trader, CMC Markets)

Exhibiting signs of exhaustion, the Aussie market took some time to wipe the sweat off its brow after the previous five sessions of climbing. Local stocks spent a majority of the morning making a slow ascent, with traders holding off any real commitment until after the local employment data was released. Pre-lunch brought a double barrel of disappointment, in the form of employment readings. The unemployment rate was worse than the market had forecast, coming in at 6.0%, the highest in over 10 years. The six prefix sent Aussie stocks and dollar alike into a tailspin. Local equities plunged a solid 30 points following the news and dominated investor sentiment for the remainder of the session.

In afternoon trading, the market is suspended in limbo, swinging between in mild losses and mild gains. The big four banks placed downward pressure on the Aussie 200, as investors eased their foot off the buying-accelerator. The reporting calendar was bursting at the seams again today, with plenty of big names featured on the agenda. Telstra narrowly beat analyst expectation and raised their dividend for the first time in nine years. The stock is up 0.6% over the session. Mining heavyweight RIO is due to present its full year profit earnings after the closing bell and given its size is likely to affect investor sentiment towards the resource sector in general.

After the IMF’s comments last night suggesting the Aussie dollar is trading at elevated levels and needs to depreciate by about 10%, the currency reacted very stubbornly. After this week’s re-entrance into 90-zone, the dollar remained static within the early US0.90 ranges until unemployment numbers were unleashed. Unexpectedly poor employment data shot the dollar back almost a whole cent, it is currently sitting at around the US0.893 mark. Dollar stickiness to this range may be dependent on retail sales and jobless claims statistics due tonight.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Drones: First Certificate Issued Under New UAV Rules

Transport Minister Simon Bridges and Associate Transport Minister Craig Foss say the first certified flight of an unmanned helicopter under new aviation rules is a great example of how they can enable commercial use. More>>

ALSO:

GE Swedes And Cow Deaths: Plant Analysis Backs Up Earlier Advice

The industry body is recommending that farmers do not feed Herbicide Tolerant (HT) swedes to cows in spring when the animals are in late pregnancy or early lactation. DairyNZ is also advising caution if farmers are considering other leafy varieties. More>>

ALSO:

Statistics: Dairy And Travel Still Our Largest Export Earners

New Zealand earned $2.3 billion more from exports than we spent on imports during the year ended June 2015... total exports of goods and services were $67.5 billion, while total imports were $65.1 billion. More>>

ALSO:

Approval: Air New Zealand And Air China Launch New Alliance Route

Air New Zealand and Air China have today launched joint sales for a new daily direct service between Auckland and Beijing after receiving approval from New Zealand Minister of Transport Hon Simon Bridges to form a strategic alliance. More>>

ALSO:

Money Trading: FX Trader Jin Yuan Finance Warned Over Lack Of Monitoring

Jin Yuan Finance, an Auckland-based foreign exchange trader, has been warned over its lack of anti-money laundering processes in place in the first public notification by the Department of Internal Affairs. More>>

ALSO:

Auckland Surge, Possible Peak: House Values Accelerate At Fastest Annual Pace In 8 Years

New Zealand residential property values rose at their fastest annual pace in eight years in August, pushed higher by overflowing demand in Auckland, which is showing signs speculators think it has reached its peak, according to Quotable Value. More>>

ALSO:

Cash Money: Reserve Bank Launches New $5 And $10 Banknotes

The $5 and $10 final banknotes were revealed at an event at the Bank in Wellington, and will start to be released from mid-October 2015. More>>

ALSO:

Truck Sales Booted: Commerce Commission Files Charges Against Mobile Trader

The Commerce Commission has filed charges against a mobile trader, or truck shop operator, claiming he obtained money from customers by deception and never intended to supply them with the goods they paid for. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news