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

 


NZ dollar slips as greenback lifts on labour data

NZ dollar slips as greenback lifts on labour data ahead of payrolls report

By Tina Morrison

Aug. 1 (BusinessDesk) - The New Zealand dollar weakened as US labour market data strengthened the greenback, bolstering optimism of an upbeat US non-farm payrolls report today which may reinforce the case for the Federal Reserve to hike rates sooner than pexpected.

The kiwi slipped to 84.93 US cents at 8am in Wellington, from 85.03 cents at 5pm yesterday. The trade-weighted index edged lower to 79.67 from 79.71 yesterday.

The US dollar index, which measures the greenback against a basket of currencies, held at its highest level in more than 10 months as a measure of US labour costs monitored by the Fed had its biggest jump in more than five years while the four-week average of jobless claims fell to its lowest since 2006. The labour market data follows better than expected US second quarter GDP this week and is reinforcing optimism for strength in the US non farm payrolls report tonight.

"There's scope for further US dollar strength," said OMF senior foreign exchange dealer Martin Rudings. "For the remainder of the year, the US economy is going to continue to recover quite strongly. That's just going to help support the dollar. Maybe at some point this year, the Fed will come clean with an earlier Fed rate hike than what they are trying to say at the moment. All that will add into a stronger dollar and the kiwi and Aussie will probably come off."

Trader reaction to the labour market data was muted as they await confirmation of the state of the US economy from the payrolls report tonight. Economists in a Reuters poll expect the data to show the US added 233,000 jobs in July. Should the data beat expectations, the kiwi and Aussie "may come off quite hard", Rudings said.

During local trading today, the kiwi will probably drift down towards 84.60 US cents, Rudings said.

The New Zealand dollar rose to 91.39 Australian cents from 91.24 cents yesterday ahead of Chinese manufacturing PMI data for due for release this afternoon. China is Australia's largest trading partner. Australia also has July house price data and quarterly PPI.

"We are seeing some buyers of kiwi against the Aussie and that looks like there is some room to go up," OMF's Rudings said.

The kiwi edged lower to 63.43 euro cents from 63.48 cents yesterday. European inflation unexpectedly slowed to 0.4 percent in July from 0.5 percent in June. That's the lowest inflation rate since 2009 in an environment where the European Central Bank is increasing stimulus to fight against the threat of deflation.

The local currency advanced to 50.30 British pence from 50.24 pence yesterday and was little changed at 87.36 yen from 87.37 yen.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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