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

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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