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

 


NZ dollar edges up as market latches on to weak US job news

NZ dollar edges up as market latches on to weaker US employment data

May 2 (BusinessDesk) - The New Zealand dollar edged up as investors latched on to weaker than expected US employment data, after figures earlier this week showed soft economic growth in the first three months of the year.

The kiwi increased to 86.36 US cents at 8am in Wellington from 86.13 cents yesterday. The trade-weighted index advanced to 80.27 from 80.01.

Markets largely ignored positive consumer spending and manufacturing news in the world’s biggest economy, focusing instead on an unexpected rise in initial jobless claims ahead of April’s non-farm payrolls report on Friday in Washington. Tepid first-quarter growth in the US sparked concerns about the strength of its economy, though forward-looking indicators still show signs of life.

“There’s a small bias towards responding to negative news,” said Imre Speizer, market strategist at Westpac Banking Corp. “That will overall keep the US dollar weak and push up the kiwi/US.”

Westpac’s Speizer said the kiwi may trade between 86 US cents and 86.40 cents today ahead of the US payrolls report.

A number of European markets were closed for the May Day holiday yesterday, keeping trading volumes light.

Traders will keep an eye on the ANZ commodity price index today for a read on New Zealand’s export market, and after prices have been drifting down in recent months.

The kiwi rose to 88.34 yen at 8am in Wellington from 88.06 yen yesterday, and climbed to 93.09 Australian cents from 92.67 cents. It increased to 62.29 euro cents from 62.07 cents, and edged up to 51.11 British pence from 51.02 pence.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Export Values Down: NZ Posts Biggest Annual Trade Deficit In 7 Years

New Zealand has recorded its biggest annual trade deficit since April 2009, reflecting weaker prices of agricultural commodities such as dairy products, beef and lamb, and increased imports of vehicles and machinery. More>>

ALSO:

Currency Events: NZ's New $5 Note Wins International Banknote Award

New Zealand’s new Brighter Money $5 note has been named Banknote of the Year in a prestigious international competition. The $5 note was awarded the IBNS Banknote of the Year title at the International Bank Note Society’s annual meeting. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news