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

 


NZ dollar hits 7-week high as US jobs report looms

NZ dollar advances to 7-week high as analysts pull back expectations for US payroll data

By Tina Morrison

March 6 (BusinessDesk) – The New Zealand dollar advanced to a seven-week high as analysts pulled back their expectations for a key US employment measure tomorrow following weaker data.

The kiwi touched a high of 84.32 US cents this morning and was trading at 84.22 cents at 8am from 83.90 cents at 5pm yesterday. The trade-weighted index reached a six-week high of 79.17 and was at 79.07 at 8am from 78.83 yesterday.

The greenback weakened against higher yielding currencies after softer than expected reports on private sector payrolls and the employment component of non-manufacturing ISM signalled tomorrow’s key US non-farm payrolls report may be weaker than previously expected.

“Markets took a dim view of US employment indicators, leading to USD weakness against NZD,” ANZ Bank strategist Carrick Lucas and senior FX strategist Sam Tuck said in a note. “ADP employment and ISM non-manufacturing employment both signalled downside risks to Friday’s payrolls and thus the US recovery in general.”

The ADP National Employment report showed US private employers added 139,000 jobs in February, lower than the 160,000 expected in a Reuters poll of economists, while gains the previous month were revised downward. Meantime, the employment component of the non-manufacturing ISM slumped to a four-year low of 47.5 from 56.4 in January.

“Analysts were busy ratcheting down their forecasts for Friday’s payrolls data,” ANZ said. Traders are currently expecting an extra 150,000 jobs were added to non-farm payrolls in February and markets may look through a weaker number on the expectation the month was impacted by winter storms.

“The big question now is whether we get a sharp bounce in payrolls next month,” ANZ said.

The New Zealand dollar advanced to 93.70 Australian cents from 93.63 cents yesterday ahead of data on Australia’s trade balance and retail sales for January, scheduled for release at 1:30pm New Zealand time.

The kiwi touched a six-week high of 86.33 yen and was trading at 86.17 yen at 8am from 85.71 yesterday as concerns eased over escalating tensions between Russia and Ukraine.

The local currency rose to 61.30 euro cents from 61.08 cents yesterday amid speculation the European Central Bank may increase stimulation when it meets today. The euro failed to increase even after better-than expected retail sales and a positive report on private sector business growth.

The New Zealand dollar touched a three-week high of 50.49 British pence and was trading at 50.34 pence at 8am from 50.32 pence yesterday leading in to the Bank of England meeting where no change is expected.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news