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

 


NZ dollar falls to week-low vs. A$ on Australian jobs growth

NZ dollar falls to week-low vs. A$ on Australian jobs growth

By Paul McBeth

May 8 (BusinessDesk) - The New Zealand dollar fell to a week-low against its trans-Tasman counterpart after Australia added more jobs than expected last month and as Chinese trade figures were unexpectedly upbeat.

The kiwi fell as low as 92.26 Australian cents, trading at 92.39 cents at 5pm in Wellington from 93.02 cents yesterday. The local currency traded at 86.56 US cents at 5pm from 86.59 cents at 8am, down from 86.88 cents yesterday, after Reserve Bank governor Graeme Wheeler said he may sell the kiwi which he considers overvalued.

Australia added 14,200 full-time jobs in April, according to the Bureau of Statistics, and more than the 9,000 expected. That added to two months of strong employment growth and added to improving sentiment about Australia’s economy. The Australian dollar also got a boost from Chinese trade figures showing a 0.9 percent increase in exports and a 0.8 percent rise in imports, driving a bigger surplus than anticipated.

“It was a pretty positive jobs number, and then the Chinese data gave the Aussie another boost,” said Martin Rudings, client adviser at OMF. “Market positioning has a lot of people long on the kiwi against the Aussie, but the signal today with the Aussie numbers is that it might be time to take some money off the table.”

The kiwi dollar started the day on the backfoot after New Zealand’s Reserve Bank governor Wheeler said yesterday it would be opportune to intervene if the currency remains elevated in the face of deteriorating economic fundamentals. Westpac Banking Corp economists today lowered their forecast track for interest rate hikes, predicting a pause in July rather than another increase.

Quotable Value figures today showed New Zealand property values rose at the slowest annual pace in seven months in April, with rising interest rates and restrictions on low-equity home lending discouraging first-home buyers.

Meanwhile, in the US, Federal Reserve chair Janet Yellen will meet with the Senate Budget Committee on Thursday in Washington. In testimony to Congress yesterday, she said both the US economy and the American jobs market have continued to improve, but stressed that the Federal Open Market Committee plans to maintain the stream of easy money.

The local currency fell to 88.14 yen at 5pm in Wellington from 88.26 yen yesterday. It declined to 62.20 euro cents from 62.38 cents, and slipped to 51.05 British pence from 51.16 pence ahead of the European Central Bank’s and Bank of England’s respective policy reviews. The trade-weighted index dropped to 80.14 from 80.43 yesterday.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

ICT Innovation: Six NZ Finalists In World Summit Awards

The awards are a global showcase of 40 projects, across eight categories, with a special emphasis on those which show the benefits of information and communication technology for the development of communities. New Zealand has finalists in six of the eight categories. More>>

ALSO:

Final Frontier: Rocket Lab And NASA Sign Commercial Space Launch Agreement

Rocket Lab has signed a Commercial Space Launch Act Agreement with the National Aeronautics and Space Administration (NASA). The agreement enables Rocket Lab to use NASA resources - including personnel, facilities and equipment - for launch and reentry efforts. More>>

ALSO:

Scoop Business: Wheeler Downplays Scope For ‘Large’ Rates Fall

Reserve Bank governor Graeme Wheeler says some market commentators are predicting further declines in interest rates that would only make sense for an economy in recession, although some easing is likely to be needed to maintain New Zealand’s economic growth. More>>

ALSO:

Ruataniwha Dam: Consent Conditions Could Mean Reduced Intensity

Legal advice sought by the Hawke’s Bay Regional Council on the Ruataniwha Dam consent conditions has confirmed that farmers who sign up to take water from the dam could be required to reduce the intensity of their farming operation to meet the catchment’s strict nitrogen limit. More>>

Health And Safety: Bill Now Sees Rules Relaxed For Small Businesses

Health and safety law reform sparked by the Pike River coalmine disaster has been reported back from the industrial relations select committee with weakened requirements on small businesses to appoint health and safety representatives and committees. More>>

ALSO:

Bearing Fruit: Annual Fruit Exports Hit $2 Billion For First Time

The value of fruit exported rose 20 percent (up $330 million) for the June 2015 year when compared with the year ended June 2014. Both higher prices and a greater quantity of exports (up 9.0 percent) contributed to the overall rise. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news