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


NZ dollar stays high as US employment data comes into focus

NZ dollar stays high as US employment, local confidence comes into focus

By Paul McBeth

March 31 (BusinessDesk) - The New Zealand dollar stuck close to its recent two-and-a-half year high against the greenback as investors shift their focus to a series US employment figures this week, and ahead of a local business confidence survey today.

The kiwi was little changed at 86.56 US cents at 8am from 86.58 cents at the close of trading in New York on Friday, down from 86.85 cents at 5pm in in Wellington last week. The trade-weighted index edged down to 80.84 from 80.94 last week in Wellington.

Traders will be looking for further evidence the world’s biggest economy is on the path to recovery this week with jobs figures culminating in the Federal government’s non-farms payrolls report on Friday in Washington. Harsh winter conditions through the end of 2013 and start of this year stifled production, and investors are hoping to see some improvement, which will spur the Federal Reserve to shift away from its ultra-loose monetary policy.

“We would not expect NZ data to change the picture of overall domestic strength and all eyes will be on US and global activity data culminating in US payrolls Friday,” ANZ Bank New Zealand senior economist Mark Smith and senior FX strategist Sam Tuck said in a note. “With no compulsion on inflation grounds to normalise policy settings in Europe or the US, the NZ economy is likely to continue to stand out like a sore thumb. Those wanting a lower NZD may have to wait a while yet.”

ANZ said the local currency may trade 86.20 US cents and 87.20 cents today.

Locally, the ANZ Business Outlook is expected to show more optimism among the local corporate community, though it may ease from the 20-year high it reached in February. Government data is expected to show building permits rose in February.

The kiwi was little changed at 93.63 Australian cents at 8am from 93.57 cents at 5pm in Wellington last week, ahead of tomorrow’s Reserve Bank of Australia monetary policy meeting. The central bank’s board is expected to keep the key rate unchanged at 2.5 percent, though traders have priced in a 2 percent chance of a cut, based on the Overnight Index Swap curve.

The local currency rose as high as 89.20 yen, this highest since July 2007, trading at 89.01 yen at 8am in Wellington from 88.70 yen last week. It fell to 62.88 euro cents from 63.17 cents last week, and declined to 51.95 British pence from 52.25 pence.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Trade: NZ Trade Deficit Widens To A Record In September

Oct. 27 (BusinessDesk) - New Zealand's monthly trade deficit widened to a record in September as meat exports dropped to their lowest level in more than three years. More>>


Animal Welfare: Cruel Practices Condemned By DairyNZ Chief

DairyNZ chief executive Tim Mackle says cruel and illegal practices are not in any way condoned or accepted by the industry as part of dairy farming.

Tim says the video released today by Farmwatch shows some footage of transport companies and their workers, as well as some unacceptable behaviour by farmers of dragging calves. More>>


Postnatal Depression: 'The Thief That Steals Motherhood' - Alison McCulloch

Post-natal depression is a sly and cruel illness, described by one expert as ‘the thief that steals motherhood’, it creeps up on its victims, hiding behind the stress and exhaustion of being a new parent, catching many women unaware and unprepared. More>>


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


International Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news