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

 

Scoop Business: NZ Dollar Catches Breath After "Goldilocks" Slump

The New Zealand dollar edged up following its dramatic slump yesterday after the Reserve Bank confirmed speculation it intervened in the currency market last month and PM John Key suggested a “Goldilocks” level far lower than at present. More>>

ALSO:

Biosecurity: Kiwifruit Claim To Hold Officials Accountable For Psa

Kiwifruit growers have joined forces to hold Biosecurity NZ accountable in the courts for its negligence in allowing 2010’s Psa outbreak that devastated New Zealand’s kiwifruit industry and exports. Foundation claimants representing well ... More>>

ALSO:

Poison: Anglers Advised Not To Eat Trout In 1080 Areas

With the fishing season opening in just a few days (1 October 2014), anglers are being warned by the Department of Conservation(DOC) not to eat trout from pristine backcountry waters and their downstream catchments, where the department is conducting 1080 poisoning operations. More>>.

ALSO:

Quotas: MPI Swoop On Suspected Fraudulent Fishing Activity

Ministry for Primary Industries (MPI) compliance officers swooped on a Hawkes Bay fishing enterprise today to secure evidence in an investigation into suspected fraudulent activity... “The investigation involves activity throughout the commercial supply chain – catching, landing, processing and exporting.” More>>

ALSO:

Scoop Business: Fonterra Slashes 2015 Milk Payout, Earnings Tumble 76%

Fonterra Cooperative Group cut its forecast 2015 milk price payout by about 12 percent, citing weaker global dairy prices and said there is a risk of further declines given strong global milk production. More>>

ALSO:

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news