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

 

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