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

 


NZ dollar falls after better than expected US jobs data

NZ dollar falls after US employment prints better than expected, bolstering greenback

By Tina Morrison

March 10 (BusinessDesk) – The New Zealand dollar weakened after a key measure of US employment posted stronger-than-forecast gains, reinforcing expectations the Federal Reserve will continue to taper its stimulus programme and boosting the greenback.

The kiwi weakened to 84.38 US cents from 84.61 cents at the New York close and 84.78 cents at 5pm on Friday. The trade-weighted index slipped to 79.01 from 79.29 on Friday.

The US dollar index, which measures the greenback against a basket of currencies, advanced after a report Friday showed US employers added 175,000 payrolls in February, above the 149,000 expected even in the face of harsh winter weather. That cemented expectations the Fed will continue to pull back its bond-buying stimulus programme by about US$10 billion a month. A reduction in the programme underpins the greenback as it reduces the amount of currency in circulation.

“The New Zealand dollar declined along with most of its peers after the release of the US payrolls report on Friday night,” Kymberly Martin, markets strategist at Bank of New Zealand, said in a note. “The delivery of a better-than-expected reported boosted the US against most of its peers, the New Zealand dollar being no exception.”

Also weighing on the kiwi, data out over the weekend showed a sharp decline in Chinese February exports, down 18.1 percent compared with an expected gain of 7.5 percent. That is likely to weigh on the Australian dollar today, BNZ’s Martin said.

Ahead today, New Zealand is scheduled to release data on fourth quarter manufacturing activity at 10:45am. Later this week, the nation’s Reserve Bank is expected to raise interest rates by a quarter-point to 2.75 percent.

The New Zealand dollar edged up to 93.34 Australian cents at 8am in Wellington from 93.25 cents at 5pm on Friday, slipped to 60.81 euro cents from 61.18 cents and weakened to 50.41 British pence from 50.65 pence. The kiwi fell to 86.74 yen from 87.26 yen on Friday ahead of the release of Japanese balance of payments and the final reading of fourth quarter growth figures.

(BusinessDesk)

© 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