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

 

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Export Values Down: NZ Posts Biggest Annual Trade Deficit In 7 Years

New Zealand has recorded its biggest annual trade deficit since April 2009, reflecting weaker prices of agricultural commodities such as dairy products, beef and lamb, and increased imports of vehicles and machinery. More>>

ALSO:

Currency Events: NZ's New $5 Note Wins International Banknote Award

New Zealand’s new Brighter Money $5 note has been named Banknote of the Year in a prestigious international competition. The $5 note was awarded the IBNS Banknote of the Year title at the International Bank Note Society’s annual meeting. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news