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

 

NZ dollar edges down from three-week high

NZ dollar edges down from three-week high as investors mull US jobs report

By Paul McBeth

May 5 (BusinessDesk) - The New Zealand dollar slipped from a three-week high as investors mulled US employment data which showed weak wage growth, even as the world’s biggest economy added more jobs than expected last month.

The kiwi fell to 86.57 US cents at 5pm in Wellington from as high as 86.82 cents earlier in the day. It was down from 86.71 cents at 8am and 86.66 cents on Friday in New York. The trade-weighted index edged down to 80.42 at 5pm in Wellington 80.55 last week.

The local currency’s strength eased in the Asian session as investors weighed up US non-farm payrolls, which showed better-than-expected jobs growth of 288,000 in April. The pick-up in employment was tempered by a declining participation rate and flat wages.

“People were hoping for a good non-farm payrolls number, and when we got it, we saw US dollar strength before the rest of the data came out,” said Alex Hill, head of dealing at HiFX in Auckland. “When the US dollar decides to appreciate, it will happen quickly, but employment wasn’t enough to do that for us on Saturday.”

HiFX’s Hill said the local currency is stuck in a range of between 85 US cents and 87 cents, with domestic data likely to weigh on the kiwi.

A BusinessDesk survey of 10 traders and strategists predict the kiwi may trade between 84.80 US cents and 88.40 cents this week. Six predict the kiwi will fall this week, two expect it to gain and two pick it to remain largely unchanged.

Japan’s yen strengthened after Bank of Japan governor Haruhiko Karoda told CNBC the nation’s economic recovery is on track, sapping expectations the central bank will add more stimulus to the world’s third-biggest economy. The kiwi fell to 88.20 yen at 5pm in Wellington from 88.58 yen on Friday in New York.

The local currency slipped to 93.40 Australian cents from 93.51 cents ahead of tomorrow’s Reserve Bank of Australia rate review, which will likely keep the target cash rate at 2.75 percent.

New Zealand’s currency traded at 62.37 euro cents at 5pm in Wellington from 62.47 cents last week, and was little changed at 51.30 British pence from 51.37 pence.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

By May 2018: Wider, Earlier Microbead Ban

The sale and manufacture of wash-off products containing plastic microbeads will be banned in New Zealand earlier than previously expected, Associate Environment Minister Scott Simpson announced today. More>>

ALSO:

Snail-ier Mail: NZ Post To Ditch FastPost

New Zealand Post customers will see a change to how they can send priority mail from 1 January 2018. The FastPost service will no longer be available from this date. More>>

ALSO:

Property Institute: English Backs Of Debt To Income Plan

Property Institute of New Zealand Chief Executive Ashley Church is applauding today’s decision, by Prime Minister Bill English, to take Debt-to-income ratios off the table as a tool available to the Reserve Bank. More>>

ALSO:

Divesting: NZ Super Fund Shifts Passive Equities To Low-Carbon

The NZ$35 billion NZ Super Fund’s NZ$14 billion global passive equity portfolio, 40% of the overall Fund, is now low-carbon, the Guardians of New Zealand Superannuation announced today. More>>

ALSO:

Split Decision - Appeal Planned: EPA Allows Taranaki Bight Seabed Mine

The Decision-making Committee, appointed by the Board of the Environmental Protection Authority to decide a marine consent application by Trans-Tasman Resources Ltd, has granted consent, subject to conditions, for the company to mine iron sands off the South Taranaki Bight. More>>

ALSO: