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

 

Statistics: Net Annual Migration Passes 71,000

A record 71,300 more migrants arrived in New Zealand than left in the January 2017 year, Statistics New Zealand said today. This surpassed the previous annual record set in December 2016. More>>

ALSO:

Fossils: Ancient Penguins Lived Alongside Dinosaurs?

Penguins are much older than previously thought and their evolution probably dates back to the days of the dinosaurs, according to research on the fossilised leg bone and toes of a giant ancient penguin found in rocks near Waipara, North Canterbury. More>>

No Voda/Sky: Commission Declines Clearance For Merger

The Commerce Commission has declined to grant clearance for the proposed merger of Sky Network Television and Vodafone New Zealand. More>>

ALSO:

EARLIER:

Power: IEA Report On New Zealand's Energy System

Outside of its largely low-carbon power sector, managing the economy’s energy intensity and greenhouse gas emissions while still remaining competitive and growing remains a challenge. More>>

ALSO:

NASA: Seven Earth-Size Planets Around A Single Star

NASA's Spitzer Space Telescope has revealed the first known system of seven Earth-size planets around a single star. Three of these planets are firmly located in the habitable zone, the area around the parent star where a rocky planet is most likely to have liquid water. More>>

ALSO:

Auckland Transport Case: Men Guilty Of Corruption And Bribery Will Spend Time In Jail

Two men who were found guilty of corruption and bribery in a Serious Fraud Office (SFO) trial have been sentenced in the Auckland High Court today... The pair are guilty of corruption and bribery offences relating to more than $1 million of bribes which took place between 2005 and 2013 at Rodney District Council and Auckland Transport. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news