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

 

Fisheries: Report On Underrsize Snapper Catch

The report found that commercial fishers caught 144 tonnes of undersized snapper in the Snapper 1 area – about 3% of the total commercial catch – in the year ending February 2015. The area stretches from the top of the North Island to the Bay of Plenty and is one of New Zealand’s most important fisheries. More>>

ALSO:

Tourism: China Southern Airlines To Fly To Christchurch

China Southern Airlines, in partnership with Christchurch Airport and the South Island tourism industry, has announced today it will begin flying directly between Guangzhou, Mainland China and the South Island. More>>

ALSO:

Dodgy: Truck Shops Come Under Scrutiny

Mobile traders, or truck shops, target poorer communities, particularly in Auckland, with non-compliant contracts, steep prices and often lower-quality goods than can be bought at ordinary shops, a Commerce Commission investigation has found. More>>

ALSO:

Auckland Transport: Government, Council Agree On Funding Approach

The government and Auckland Council have reached a detente over transport funding, establishing a one-year, collaborative timetable for decisions on funding for the city's transport infrastructure growth in the next 30 years after the government refused to fund the $2 billion of short and medium-term plans outlined in Auckland's draft Unitary Plan. More>>

ALSO:

Bullish On China Shock: Slumping Equities, Commodities May Continue, But Not A GFC

The biggest selloff in stock markets in at least four years, slumping commodity prices and a surge in Wall Street's fear gauge don't mean the world economy is heading for another global financial crisis, fund managers say. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news