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

 


NZ dollar heads for 1.2 percent weekly decline

NZ dollar heads for 1.2 percent weekly decline as weak dairy weighs, US jobs report looms

By Paul McBeth

April 4 (BusinessDesk) - The New Zealand dollar is heading for a 1.2 percent weekly decline after falling dairy prices stoked concerns about the strength of the local recovery, and as investors wait for US jobs figures which are expected to show the world’s biggest economy is improving.

The kiwi fell to 85.58 US cents at 5pm in Wellington from 86.58 cents at the New York close last Friday. It increased from 85.38 cents at 8am and 85.43 cents yesterday. The trade-weighted index rose to 80.12 from 79.94 yesterday, and is heading for a 0.9 percent weekly fall from 80.85 at last week’s close.

The local currency fell out of favour on Wednesday when dairy prices fell at Fonterra Cooperative Group’s latest online auction to their lowest level in almost a year, taking the sheen off New Zealand’s strong economic outlook. Meantime, investors will get another update on the US economy when the government non-farm payrolls report is released on Friday in Washington, which is seen as a gauge of how quickly the Federal Reserve will start moving to normal monetary policy settings.

“The kiwi was as strong as 10 men, now it’s had its big rally and the final straw to break the camel’s back was the Fonterra announcement,” said Michael Johnston, senior dealer at HiFX in Auckland. “The short-term focus is most squarely on the US non-farms, and the kiwi will stay in a tight range until then.”

If the US jobs number comes in better than expected, the kiwi will probably extend its decline, though if it disappoints the local currency may gain, HiFX’s Johnston said.

The local currency rose to 62.41 euro cents at 5pm in Wellington from 62.09 cents yesterday after the European Central Bank said it was ready to take further action to see off the threat of deflation, including the use of quantitative easing, lower rates or a negative deposit rate.

The kiwi traded at 92.61 Australian cents from 92.66 cents yesterday, and increased to 88.91 yen from 88.81 yen. It advanced to 51.59 British pence from 51.34 pence yesterday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Crown Accounts: Government Ekes Out Six-Month Surplus Of $9M

The New Zealand government eked out a tiny surplus in the first six months of the fiscal year as growth in domestic consumption lifted the goods and services tax take, while uncertainties over the Kaikoura earthquake costs meant expenses were less than expected. More>>

ALSO:

Almost 400 Jobs: Shock At Cadbury's Dunedin Factory Closure

Workers at Cadbury in Dunedin are reeling after learning this morning that the iconic Cadbury factory is to close, with the loss of almost 400 jobs... “The company had reported it was doing well and this has come out of the blue,” says Chas. More>>

ALSO:

Transport: Boards Of Inquiry For Auckland Roading Projects

Boards of Inquiry have been appointed to decide on two significant Auckland roading projects in a move which will get a decision by the end of the year, Environment Minister Dr Nick Smith and Conservation Minister Maggie Barry announced today. More>>

ALSO:

Three Months On: Quake Reciovery In Kaikōura And Elsewhere

Three months after the magnitude 7.8 earthquake on 14 November, encouraging recovery progress is being made in affected communities. More>>

ALSO:

Jetstar, Qantas For Govt Transport: Government Still In Talks With Air NZ

The government is still negotiating with national carrier Air New Zealand in a cross-agency air travel contract that will add a number of new airlines to the list of approved flyers. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news