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

 

Warming: Warming Signs From State Of Climate Report

Climate data from air, land, sea and ice in 2013 'reflect trends of a warming planet' -- says the latest State of the Climate report, launched by U.S. and New Zealand scientists. More>>

ALSO:

Scoop Business: Embrace Falling Home Affordability, Says NZIER

Despair over the inability to afford a house is misplaced and should be embraced as an opportunity to invest in more wealth-creating activity, says the principal economist at the New Zealand Institute of Economic Research, Shamubeel Eaqub. More>>

Productivity Commission: NZ Regulation Not Keeping Pace

New Zealand regulators often have to work with out-of-date legislation, quality checks are under strain, and regulatory workers need better training and development. More>>

ALSO:

Callaghan Innovation: Investment To Help Deepen Innovation Reporting

Callaghan Innovation, the government’s high tech HQ for Kiwi business, is to help deepen New Zealand media coverage of the commercialisation of innovation through an arms-length partnership with independent business news service BusinessDesk. More>>

ALSO:

Tax Credits, Grants: Greens $1Bn R&D Plan

In the Party’s headline economic announcement, the Greens have launched their plan to build a smarter, more innovative economy which has as its centrepiece an additional $1 billion of government investment in research and development (R&D) above current spend, including tax breaks for business. More>>

ALSO:

Inflation: CPI Increases 0.3 Percent In June Quarter

The consumers price index (CPI) rose 0.3 percent in the June 2014 quarter, Statistics New Zealand said today. This follows rises of 0.3 percent the March quarter and 0.1 percent in the December 2013 quarter. More>>

ALSO:

Half Empty: Dairy Product Prices Drop To Lowest Since December 2012

Dairy product prices fell to the lowest level since December 2012 in the latest GlobalDairyTrade auction, paced by whole milk powder and anhydrous milk fat. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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