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

 


NZ dollar little changed as RBA review, US jobs loom

NZ dollar little changed as investors await RBA review, US jobs data

By Paul McBeth

March 31 (BusinessDesk) - The New Zealand dollar was little changed as investors await tomorrow’s Reserve Bank of Australia policy review, and US employment figures later in the week for a steer on global growth prospects.

The kiwi was unchanged at 86.56 US cents at 5pm in Wellington from 8am, and little changed from 86.58 cents on Friday in New York. The trade-weighted index slipped to 80.86 from 81.03 last week.

The RBA is expected to keep the target cash rate at 2.5 percent when it reviews monetary policy tomorrow, and traders will focus on whether governor Glenn Stevens tries to talk down the Australian dollar in his commentary after omitting to do so in a recent speech in Hong Kong. The kiwi declined to 93.74 Australian cents from 93.92 cents on Friday in New York

The RBA review precedes US employment data culminating in the Federal government’s non-farm payrolls report on Friday. An improving labour market is seen as a bellwether for the US Federal Reserve to move away from its ultra-loose monetary policy.

“The Aussie stuff tomorrow and the US jobs data mid-week is the focus,” said Alex Hill, head of dealing at HiFX in Auckland. “One of the worst-kept theories is that the US dollar is due to strengthen after the employment numbers,” which should weaken the kiwi, he said.

The New Zealand dollar has been a favourite among traders due to the country’s strong growth prospects and the Reserve Bank’s move to higher interest rates. Economic figures today reinforced that, with strong business and employment confidence surveys, and government data showing building permits for new housing still growing. The local currency is heading for a 5 percent gain against the greenback this quarter.

The kiwi dollar held near a six-and-a-half year high against the yen as figures showed Japanese industrial production unexpected fell in February in its sharpest decline for eight months. The kiwi traded at 89.04 yen at 5pm in Wellington from 89.20 on Friday in New York, the highest level since July 2007.

HiFX’s Hill said the yen is at some key technical levels against the greenback, and could weaken further if those levels break. It traded at 102.87 per US dollar from 102.97x last week.

The kiwi fell to 62.95 euro cents from 63.43 cents on Friday in New York, and declined to 52.04 British pence from 52.36 pence.

(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