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

 


New Zealand dollar falls on US rate hike speculation

New Zealand dollar falls on US rate hike speculation

By Suze Metherell

July 7 (BusinessDesk) - The New Zealand dollar fell after last week's strong US employment data stoked market speculation the Federal Reserve will move to hike interest rates sooner than expected.

The kiwi was 87.18 US cents at 5pm in Wellington, from 87.38 cents at New York close and 87.49 cents at 5pm on Friday. The trade-weighted index fell to 81.21, a five-day low, from 81.30 at the New York close.

The US dollar strengthened after US Labor Department figures on Thursday showed 288,000 jobs were added in June, exceeding the 215,000 the market was expecting, while unemployment dropped to 6.1 percent from 6.3 percent in May. The accelerating recovery of the world's biggest economy has fuelled expectations among traders that Fed chair Janet Yellen will hike interest rates sooner than anticipated.

"Until that payrolls number came out the sense was that the Fed was likely to maintain interest rates at a very low level, and have an extended period of low interest rates," said Garry Dean, a trader at CMC Markets. "The market is feeling that the pressure is going to start to come on Janet Yellen, she might need to satisfy the market and start looking at bringing forward interest rate rises, which is why, of course, the US dollar has begun to rise."

Minutes for the June meeting of the Federal Reserve are scheduled to be published on Wednesday in Washington, giving the market more insight into the policymaker's outlook.

A BusinessDesk survey of 10 traders and strategists predicts the kiwi may trade between 86.40 US cents and 88.50 cents this week. Six predict the kiwi will fall this week, while two expect it to gain and two say it will likely remain largely unchanged.

"The market is following on from that payroll data, we saw the US dollar close the week on bid tone and that's really followed through and traders are wondering if early on the week we might just get a continuation of that US dollar strength," CMC's Dean said. The kiwi was currently supported at 87 US cents, he said.

The New Zealand dollar edged lower to 93.14 Australian cents at 5pm in Wellington, from 93.21 cents at New York close. CMC's Dean said Thursday employment figures across the Tasman are likely to move the Australian dollar.

The local currency dropped to 89.01 yen, from 89.21 at the New York close and was little changed at 50.85 British pence, from 50.92 pence last week. The kiwi slipped to 64.18 Euro cents, from 64.26 cents.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Drones: First Certificate Issued Under New UAV Rules

Transport Minister Simon Bridges and Associate Transport Minister Craig Foss say the first certified flight of an unmanned helicopter under new aviation rules is a great example of how they can enable commercial use. More>>

ALSO:

GE Swedes And Cow Deaths: Plant Analysis Backs Up Earlier Advice

The industry body is recommending that farmers do not feed Herbicide Tolerant (HT) swedes to cows in spring when the animals are in late pregnancy or early lactation. DairyNZ is also advising caution if farmers are considering other leafy varieties. More>>

ALSO:

Statistics: Dairy And Travel Still Our Largest Export Earners

New Zealand earned $2.3 billion more from exports than we spent on imports during the year ended June 2015... total exports of goods and services were $67.5 billion, while total imports were $65.1 billion. More>>

ALSO:

Approval: Air New Zealand And Air China Launch New Alliance Route

Air New Zealand and Air China have today launched joint sales for a new daily direct service between Auckland and Beijing after receiving approval from New Zealand Minister of Transport Hon Simon Bridges to form a strategic alliance. More>>

ALSO:

Money Trading: FX Trader Jin Yuan Finance Warned Over Lack Of Monitoring

Jin Yuan Finance, an Auckland-based foreign exchange trader, has been warned over its lack of anti-money laundering processes in place in the first public notification by the Department of Internal Affairs. More>>

ALSO:

Auckland Surge, Possible Peak: House Values Accelerate At Fastest Annual Pace In 8 Years

New Zealand residential property values rose at their fastest annual pace in eight years in August, pushed higher by overflowing demand in Auckland, which is showing signs speculators think it has reached its peak, according to Quotable Value. More>>

ALSO:

Cash Money: Reserve Bank Launches New $5 And $10 Banknotes

The $5 and $10 final banknotes were revealed at an event at the Bank in Wellington, and will start to be released from mid-October 2015. More>>

ALSO:

Truck Sales Booted: Commerce Commission Files Charges Against Mobile Trader

The Commerce Commission has filed charges against a mobile trader, or truck shop operator, claiming he obtained money from customers by deception and never intended to supply them with the goods they paid for. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news