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

 


NZ dollar pares loss after upbeat US jobs report

NZ dollar pares loss after upbeat US jobs report fuels bets on Fed action, weak Chinese trade numbers

By Paul McBeth

March 10 (BusinessDesk) - The New Zealand dollar pared its loss after stronger-than-expected US labour data stoked optimism about the recovery of the US economy, which would let the Federal Reserve continue to trim its asset purchase programme, and as Chinese trade figures disappointed.

The kiwi rose to 84.61 US cents at 5pm in Wellington from 84.38 cents at 8am, and unchanged from 84.61 cents at the New York close on Friday. The trade-weighted index fell to 79.19 from 79.28 last week.

US employers added 175,000 jobs last month, ahead of the 149,000 new jobs predicted, as the harsh winter conditions didn’t deter hiring as much as anticipated. That underpinned appetite for the greenback as investors expect the Fed to keep scaling back its quantitative easing programme, which has been debasing the US currency by increasing circulation. A sharp decline in Chinese exports also weighed on the kiwi.

“Hope for kiwi exporters stayed alive after the terrible Chinese trade balance and pretty good numbers out of the States,” said Alex Hill, head of dealing at HiFX in Auckland. “If we get a string of good US data, we could provide the opportunity for that to become the flavour of the month” and break the kiwi out of its recent 2 US cents range, he said.

Traders are looking to this week’s New Zealand Reserve Bank meeting on Thursday, when governor Graeme Wheeler is expected to embark on a round of higher interest rates.

HiFX’s Hill expects the RBNZ will hike the benchmark rate two or three times this year from its record-low 2.5 percent, which would remove the added stimulus put in place in March 2011 when the key rate was cut in response to the Canterbury earthquake which levelled the country’s second biggest city.

US economic figures at the end of the week, including retail sales and unemployment claims, will gain attention to gauge the strength of recovery in the world’s biggest economy.

A BusinessDesk survey of 11 traders and strategists predicts the kiwi may trade between 82.75 US cents and 86.35 cents this week. Five expect the currency to advance while four forecast a drop and two predict little change.

The kiwi fell to 87.22 yen at 5pm in Wellington from 87.43 yen at the New York close on Friday, and gained to 93.56 Australian cents from 93.32 cents last week. It was little changed at 60.92 euro cents from 61.01 cents last week, and traded at 50.56 British pence from 50.60 pence.

(BusinessDesk)

© 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