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

 


NZ dollar hits three-month high vs. Aussie on weak jobs data

NZ dollar hits three-month high vs. Aussie on weak jobs data

By Suze Metherell

July 10 (BusinessDesk) - The New Zealand dollar climbed to a three-month high against its Australian counterpart after a higher-than-expected unemployment rate across the Tasman made the local currency more attractive.

The kiwi rose as high as 93.83 Australian cents, the highest since March this year, and was trading at 93.79 cents at 5pm in Wellington from 93.57 at 5pm yesterday. It was unchanged at 88.20 US cents at 5pm from 8am, up from 87.93 at 5pm yesterday.

The Australian dollar fell after Federal government data showed the jobless rate rose to 6 percent in June, from a revised 5.9 percent rate in May, and higher than the 5.9 percent expected by traders. Job creation was slightly ahead of forecasts, with 15,900 new jobs added in the month, however 19,700 new part-time positions were offset by a fall of 3,800 full-time positions. The Reserve Bank of Australia isn't expecting the jobless rate to come down consistently for some time, and some traders are anticipating the central bank will cut interest rates further.

The Australian data was "broadly a weak sign, because you've got the unemployment rate going up, you've got permanent jobs declining which was somewhat offset by part-time jobs increasing but not hugely," said Sam Tuck, senior FX strategist at ANZ Bank New Zealand. "People play the relative spread between Australia and New Zealand," which will boost demand for the kiwi when if local interest rates become more attractive.

The kiwi rose after minutes from the Federal Reserve's June monetary policy meeting showed no change to the world's largest economy keeping interest rates low, making New Zealand's relatively high yield look attractive to investors.

"After the Fed's minutes boosted us up to 88.20 cents this morning, we've traded sideways - we haven't as yet, to the eternal consternation of everybody, created a new post-float high," Tuck said. "Short-term price action suggests its going up and will take that 88.40 high out, but from a longer-term view and a medium-term view the strength does look like it is getting pretty stretched, it can't be forever, so take your holiday in Honolulu."

ANZ's Tuck said it was highly likely the kiwi would breach the post-float high 88.40 US cents during the Northern Hemisphere trading session.

The local currency rose to 89.55 yen at 5pm from 89.34 yen yesterday, was at 51.42 British pence from 51.31 pence, and traded at 64.64 euro cents from 64.56 cents yesterday. The trade-weighted index remained at a post-float high 81.91 at 5pm in Wellington from 81.72 yesterday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Insurers Up For More Payouts: Chch Property Investor Wins Policy Appeal In Supreme Court

Ridgecrest NZ, a property investor, has won an appeal in the Supreme Court over insurance cover provided by IAG New Zealand for a Christchurch building damaged in four successive earthquakes. More>>

ALSO:

Other Cases:

Royal Society: Review Finds Community Water Fluoridation Safe And Effective

A review of the scientific evidence for and against the efficacy and safety of fluoridation of public water supplies has found that the levels of fluoridation used in New Zealand create no health risks and provide protection against tooth decay. More>>

ALSO:

Scoop Business: Croxley Calls Time On NZ Production In Face Of Cheap Imports

Croxley Stationery, whose stationery brands include Olympic, Warwick and Collins, plans to cease manufacturing in New Zealand because it has struggled to compete with lower-cost imports in a market where the printed word is giving way to electronic communications. More>>

ALSO:

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news