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

 


NZD supported ahead of US employment

NZD supported ahead of US employment


By Garry Dean (Sales Trader, CMC Markets New Zealand)


The New Zealand dollar’s surge to a fresh 2 ½ year high of 0.8698 on Friday looked a little extended, with technical indicators suggesting recent upward momentum was flagging, and a short-term retracement was likely. NZ business confidence figures released yesterday showed a drop in March from the 20-year high recorded in February, and overnight the NZD has found solid support at 0.8640. The remainder of the week sees policy meetings from the RBA and ECB, with US Non- Farm Payrolls on Friday expected to show an additional 200,000 jobs created in March.

The prospect of a stimulus package out of China continues to support commodity currencies, with recent comments from Chinese Premier Li Keqiang fuelling expectations. Dovish comments from US Fed Chairman Janet Yellen overnight have clouded the perception that interest rates may start to rise within six months of the end of QE tapering. She said “extraordinary commitment” from the Fed “is still needed, and will be for some time”. This has weighed on the USD, and if rising US interest rates becomes less certain, the prospect of a weaker USD will provide an additional boost for the NZD going forward.

The RBA Board meeting today is widely expected to see the cash rate remain unchanged at 2.50%, but the focus will be on the ECB meeting Thursday.

Overnight the Eurozone flash CPI reading fell to its lowest level in four years, so the ECB will remain under pressure to take action. Friday’s US employment numbers will be crucial, particularly in light of Yellen’s comments overnight. Overall the NZD continues to look well supported, with a break of 0.8700 opening up the prospect of a retest of the 0.8845 high seen in July 2011.

Ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Starts Talks On Tougher Rules For Property Speculators

The Reserve Bank of New Zealand is stepping up preparations to restrict lending to residential property investors as it watches house prices, particularly in Auckland, continue to rise strongly. More>>

ALSO:

Research: ‘Ageing Well’ Science Challenge Launched

Science and Innovation Minister Steven Joyce today launched the Ageing Well National Science Challenge, confirming initial funding of $14.6 million. More>>

ALSO:

Scoop Business: Govt Resisting Pressure To Pump More Cash Into Solid Energy

Prime Minister John Key says it is “not the government’s preferred option” to make a fresh capital injection into the troubled state-owned coal miner, Solid Energy, but dodged journalists’ questions at his weekly press conference on whether that might prove necessary... More>>

ALSO:

Lagest Ever Privacy Breach Award: NZCU Baywide Accepts “Severe” Censure In Cake Case

NZCU Baywide says that once it was found to have committed a breach of a former staff member’s privacy, it had attempted to resolve the matter... the censure and remedies for its actions taken almost three years ago are “severe” but accepted, and will hopefully draw a line under the matter. More>>

ALSO:

Scoop Business: PayPal Stops Processing Mega Payments; NZX Listing Still On

PayPal has ceased processing payments for Mega, the file storage and encryption firm looking to join the New Zealand stock market via a reverse listing of TRS Investments, amid claims it is not a legitimate cloud storage service. More>>

ALSO:

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news