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

 

Auckland Port Study: Port To Ship Out – No Departure Date

Interest groups in Auckland and its waterfront chose a group of representatives to determine the future of the port. Their consensus is that the Port is going to have to move but not before a credible location is confirmed... More>>

ALSO:

Tax: GST Threshold For Online Purchases Won't Lower Before 2018

The government wants to lower the threshold on online purchases which qualify for GST from mid-2018, but says more work is needed and there will be no change without public consultation. More>>

ALSO:

North Canterbury: Government Extends Drought Classification

The government has extended a drought classification for the eastern South Island until the end of the year, meaning the area will have officially been in drought for almost two years, the longest period for such a category. More>>

ALSO:

Negotiations Fail: Christchurch Convention Centre Build To Proceed Without PCNZ

After protracted negotiations, the government has ditched the construction consortium it picked to build Christchurch's replacement convention centre, which it now anticipates delivering at least two years behind the original schedule. More>>

ALSO:

Other Centres' Convention Centres:

Ruataniwha: Greenpeace Launches Legal Challenge Against $1b Dam Plan

Greenpeace NZ is launching a legal challenge against a controversial plan to build a dam that’s set to cost close to $1 billion and will pollute a region’s rivers. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news