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

 

Housing: Affordability Drops 14%, Driven By Auckland Prices

Housing affordability across New Zealand fell 14 percent in the year ending November 2014, with Auckland’s lack of affordability set to reach levels it hit during the height of the global financial crisis, according to the latest Massey University Home Affordability Report More>>

ALSO:

The Dry: Fonterra Drops Forecast Milk Volumes By 3.3 Percent

Fonterra Cooperative Group, the worlds largest dairy exporter, reduced its milk volume forecast for the 2014-2015 season by 3.3 per cent due to the impact of dry weather on production in recent weeks. More>>

ALSO:

Strike: Lyttelton Port Workers Vote To Escalate Dispute

Members of the Rail and Maritime Transport Union (RMTU) at Lyttelton Port today voted to escalate their industrial action. Around 200 RMTU members have been operating an overtime ban since 17 December and today they endorsed a series of full withdrawals of labour at the port. More>>

ALSO:

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news