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

 

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Half Full: Fonterra Raises Forecast Milk Price

Fonterra Co-operative Group Limited today increased its 2016/17 forecast Farmgate Milk Price by 50 cents to $4.75 per kgMS. When combined with the forecast earnings per share range for the 2017 financial year of 50 to 60 cents, the total payout available to farmers in the current season is forecast to be $5.25 to $5.35 before retentions. More>>

ALSO:

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Reserve Bank: Labour Calls For Monetary Policy To Expand Goals

Labour's comments follow a speech today by RBNZ governor Graeme Wheeler in which Wheeler sought to answer critics who variously say he should stop lowering interest rates, lower them faster, or that inflation-targeting should no longer be the primary goal of the central bank's activities. More>>

ALSO:

BSA Extension And Sunday Morning Ads: Digital Convergence Bill Captures Online Content

Broadcasting Minister Amy Adams has today announced the Government’s plans to update the Broadcasting Act to better reflect today’s converged market... The Government considered four areas as part of its review into content regulation: classification requirements, advertising restrictions, election programming and contestable funding. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news