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

 

Half Empty: Fonterra's 2017 Opening Forecast Below Expectations

Fonterra Cooperative Group raised its forecast farmgate milk payout for next season by less than expected as the world's largest dairy exporter predicts lower prices will crimp production and supply will pick up. The New Zealand dollar fell. More>>

ALSO:

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news