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

 

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Auckland Outage: Power Mostly Restored Overnight

Vector wishes to advise that all but 324 customers have been restored overnight. These customers are spread throughout the network in small pockets. The main St Johns feeder was restored around midnight allowing most of the customers in all affected areas to have power this morning. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
More RSS  RSS
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news