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


NZ dollar gains as investors seek yield after US jobs data

NZ dollar gains as investors seek yield after US jobs data disappoints

By Tina Morrison

April 7 (BusinessDesk) – The New Zealand dollar popped above 86 US cents at the weekend after a key US jobs report failed to meet the expectations of some investors, spurring demand for higher-yielding currencies.

The kiwi touched a high of 86.03 US cents and traded at 85.81 cents at 8am in Wellington from 85.97 cents at the New York close and 85.59 cents at 5pm in Wellington on Friday. The trade-weighted index advanced to 80.22 from 80.14 on Friday.

The US dollar index, which measures the greenback against a basket of currencies, weakened after US non-farm payrolls missed expectations, with 192,000 jobs added in March, lower than the 200,000 predicted by economists and the 210,000 expected by some investors. The US unemployment rate held at 6.7 percent against expectations of a fall to 6.6 percent.

“The longer it takes for US data to recover and the longer US bond yields remain depressed, the more incentive there is for international investors to park cash here in New Zealand, with AAA rated five-year Kauri bonds trading at yields close to 5 percent, which is pretty good considering US five-year Treasury bonds trade at 1.7 percent,” ANZ Bank head of markets research in New Zealand David Croy and senior foreign exchange strategist Sam Tuck said in a note.

“The bottom line: more disappointing data in the US is just piling more pressure on the New Zealand dollar,” Croy and Tuck said.

ANZ expects the New Zealand dollar to trade between 85.50 US cents and 86.30 cents today.

The New Zealand dollar slipped to 92.35 Australian cents from 92.63 cents on Friday. It advanced to 62.67 euro cents from 62.43 cents on Friday, rose to 51.77 British pence from 51.60 cents and dropped to 88.59 yen from 88.93 yen.

Today, Chinese banks are closed for Tomb Sweeping Day.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Trade & Retail: Chinese Disaster Spells Quiet Season For NZ Fireworks Sales

In August, two massive explosions at a warehouse at the port in the port of Tianjin, Northern China, killing more than a hundred people and devastating large areas of the city. In the wake of the disaster, Chinese authorities rushed to regulate the distribution of all dangerous goods... More>>



Oceans: NOAA Declares Third Ever Global Coral Bleaching Event

As record ocean temperatures cause widespread coral bleaching across Hawaii, NOAA scientists confirm the same stressful conditions are expanding to the Caribbean and may last into the new year, prompting the declaration of the third global coral bleaching event ever on record. More>>

Scoop Business: A Decade Of Government Pre-Seed Investment

More publicly-funded science is being commercialised after a decade of government ‘pre-see’d investment, according to an independent review. More>>


Solid Energy: Plan To Shut Unprofitable Huntly East Mine

Solid Energy, the state-owned coal miner in voluntary administration, plans to shut down its unprofitable Huntly East mine and lay off 65 staff after deciding the site stands "no chance whatsoever" of finding a buyer. More>>


E Tū: Merger Creates NZ's Biggest Private Sector Union

E tū has been created by the merger of the Engineering, Printing and Manufacturing Union and Service and Food Workers’ Union. It represents more than 50,000 working New Zealanders in industries as diverse as aviation, construction, journalism, food manufacturing, mining and cleaning. More>>


Internet: NZ Govt Lifts Target Speeds For Rural Broadband

The government has lifted its expectations on faster broadband speeds for rural New Zealand as it targets increased spending on research and development in the country's information and communications technology sector, which it sees as a key driver for export growth. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news