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

 


NZ dollar drops below key support level as jobs data weighed

NZ dollar drops below key support level as jobs data weighed, faces stiff resistance at 84 cents

By Tina Morrison

Aug. 6 (BusinessDesk) - The New Zealand dollar fell below a key support level of 84.50 US cents as employment data painted a mixed view of the labour market.

The kiwi fell as low as 84.27 US cents from 84.53 cents immediately before the 10:45am release of the jobs data in Wellington, and was trading at 84.38 cents at midday. The local currency weakened overnight but had failed to break through 84.50 cents amid falling dairy prices, better US economic data and as investors favoured safe haven currencies on concern about heightened tensions in the Ukraine.

The New Zealand dollar has been in decline since touching a high of 88.35 US cents last month amid weakening commodity prices, a pause in interest rate hikes, Reserve Bank intervention threats and increased demand for the greenback. Currency strategists say the next major hurdle in the kiwi's decline is the June low of 84 US cents.

"There's headwind essentially all the way into the 84 level," said Bank of New Zealand currency strategist Raiko Shareef. "I can imagine there would be pretty eager bids just above 84 cents, people looking to pick that up, and all the way to this level there would be bids scattered through so I imagine that's what's keeping us still here. This entire range between 84 and 84.60 is just fraught with technical support and it was always going to be very messy for the market to push through.

"It is back down towards testing this area where there is a whole bunch of support."

The kiwi will probably need a major catalyst to push it lower, and it could bounce back in overnight trading, Shareef said.

Statistics New Zealand said the second quarter unemployment rate fell to 5.6 percent, below the 5.8 percent forecast in a Reuters poll and down from a revised 5.9 percent in the first quarter. The participation rate fell 0.3 of a percentage point to 68.9 percent, below expectations, as the workforce remained static and the population grew. Employment grew 0.4 percent in the quarter, below the 0.7 percent pace predicted by economists and up 3.7 percent on an annual basis.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Starts Talks On Tougher Rules For Property Speculators

The Reserve Bank of New Zealand is stepping up preparations to restrict lending to residential property investors as it watches house prices, particularly in Auckland, continue to rise strongly. More>>

ALSO:

Research: ‘Ageing Well’ Science Challenge Launched

Science and Innovation Minister Steven Joyce today launched the Ageing Well National Science Challenge, confirming initial funding of $14.6 million. More>>

ALSO:

Scoop Business: Govt Resisting Pressure To Pump More Cash Into Solid Energy

Prime Minister John Key says it is “not the government’s preferred option” to make a fresh capital injection into the troubled state-owned coal miner, Solid Energy, but dodged journalists’ questions at his weekly press conference on whether that might prove necessary... More>>

ALSO:

Lagest Ever Privacy Breach Award: NZCU Baywide Accepts “Severe” Censure In Cake Case

NZCU Baywide says that once it was found to have committed a breach of a former staff member’s privacy, it had attempted to resolve the matter... the censure and remedies for its actions taken almost three years ago are “severe” but accepted, and will hopefully draw a line under the matter. More>>

ALSO:

Scoop Business: PayPal Stops Processing Mega Payments; NZX Listing Still On

PayPal has ceased processing payments for Mega, the file storage and encryption firm looking to join the New Zealand stock market via a reverse listing of TRS Investments, amid claims it is not a legitimate cloud storage service. More>>

ALSO:

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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