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

 


NZ dollar gains as traders await data on employment, dairy

NZ dollar gains as traders await data on employment, dairy prices

By Tina Morrison

May 6 (BusinessDesk) – The New Zealand dollar touched a fresh three-week high overnight in a quiet holiday session and is expected to trade in a narrow range ahead of the release of local data.

The kiwi touched 86.86 US cents early this morning, and was trading at 86.77 cents at 8am in Wellington, from 86.57 cents at 5pm yesterday. The trade-weighted index increased to 80.63 from 80.42 yesterday.

Markets in the UK and Japan were closed yesterday and traders are waiting on upcoming releases for further direction. Overnight, the US April ISM non-manufacturing index rose to an eight-month high, signalling the world’s largest economy continues to improve. Traders are keeping an eye on tensions in the Ukraine with an expectation a resolution could take some time.

“The currencies are a little bit becalmed at the moment,” said Stuart Ive, senior advisor at OMF. “Better figures coming out of the US add a little bit of confidence and a little bit of risk gets put on and hence the small gains you are seeing in the kiwi. We are really consolidating at these upper levels at the moment and waiting for bigger news, we do have a lot of data coming out in the latter part of the week.”

New Zealand employment data tomorrow is expected to show the unemployment rate dipped below 6 percent in the first quarter for the first time in five years.

“Those sorts of things will just underline the kiwi for the time being,” said OMF’s Ive. “There’s nothing really shaking the boat here at the moment - we are steady as she goes until we really see some momentum in either the Ukraine situation or when we get local data that could drive us.”

Early tomorrow morning traders will be eyeing prices in the latest GlobalDairyTrade auction and a speech by Reserve Bank governor Graeme Wheeler on the significance of dairy to the New Zealand economy.

Today, the kiwi will likely trade in a tight range between 86.60 US cents and 87.10 cents, Ive said.

The New Zealand dollar advanced to 93.57 Australian cents from 93.42 cents yesterday ahead of March trade data at 1:30pm New Zealand time, and the Reserve Bank of Australia interest rate decision at 4:30pm. The bank is expected to keep rates unchanged and maintain its neutral bias.

The kiwi gained to 62.54 euro cents from 62.38 cents after the European Commission predicted low inflation will remain a threat to euro-area expansion for at least the next two years as it trimmed its economic growth forecast and warned of the impact of tensions with Russia.

The local currency rose to 51.44 British pence from 51.30 pence while the London market was closed for the May Day bank holiday. The kiwi increased to 88.65 yen from 88.23 yen as Japanese banks were closed in observance of Children’s Day yesterday and for Greenery Day today.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news