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

 


NZ dollar breaks below 84.50 US cents on dairy drop

NZ dollar breaks below 84.50 US cents on dairy drop, jobs data

By Jonathan Underhill

Aug. 6 (BusinessDesk) - The New Zealand dollar broke below a key resistance level as the continued slide in dairy prices and data that painted a mixed picture of the labour market weighed on the kiwi in a market less willing to take on risk.

The kiwi traded at 84.29 US cents, down from 84.68 cents at the start of the day and from 85.21 cents yesterday. The trade-weighted index dropped to 79.08 from 79.76 yesterday.

New Zealand's jobless rate fell more than expected to 5.6 percent in the second quarter, although the participation rate also fell and employment grew only 0.4 percent against forecasts of a 0.7 percent gain. Overnight, dairy prices dropped to the lowest level since October 2012, weighing on a kiwi dollar already hurting from a sell-off in equity markets and reduced risk appetite.
The Reserve Bank has said the currency is unjustifiably high given the slide in prices of export commodities such as dairy and logs.

"The Reserve Bank was absolutely correct in saying the New Zealand dollar was not reflecting commodity prices, and it's probably still not," said Tim Kelleher, head of institutional FX sales at ASB Bank. "Dairy, risk off, and negative equities all combined, but dairy was the major one for us. The employment data was better, but the participation rate down, and people ignored the headline and looked at the details."

The New Zealand dollar fell to 90.61 Australian cents from 91.25 cents yesterday, dropped to 63.08 euro cents from 63.49 cents. It traded at 86.49 yen from 87.33 yen late yesterday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

On For Christmas: KiwiRail Ferries Back In Full Operation After Quake

KiwiRail’s Interislander ferries are back in full operation for the first time since the Kaikoura earthquake, with the railspan that allows rail wagons to be loaded on the Aratere now restored. More>>

ALSO:

Comerce Commission Investigation: Prosecutions Over Steel Mesh Labelling

Steel & Tube Holdings, along with two other companies, will be prosecuted by the Commerce Commission following the regulator's investigation into seismic steel mesh, while Fletcher Building's steel division has been given a warning. More>>

ALSO:

Wine: 20% Of Marlborough Storage Tanks Damaged By Quake

An estimated 20 percent of wine storage tanks in the Marlborough region, the country’s largest wine producing area, have been damaged by the impact of the recent Kaikoura earthquake. More>>

ALSO:

ACC: Levy Recommendations For 2017 – 2019 Period

• For car owners, a 13% reduction in the average Motor Vehicle levy • For businesses, a 10% reduction in the average Work levy, and changes to workplace safety incentive products • For employees, due to an increase in claims volumes and costs, a 3% increase in the Earners’ levy. More>>

Women's Affairs: Government Accepts Recommendations On Pay Equity

The Government will update the Equal Pay Act and amend the Employment Relations Act to implement recommendations of the Joint Working Group on Pay Equity. More>>

ALSO:

Immigration: Increase In Seasonal Workers For RSE

The current cap will be increased by 1,000 from 9,500 to 10,500 RSE workers for the 2016-17 season. Mr Woodhouse says the horticulture and viticulture industry is New Zealand’s fourth largest export industry, producing almost $5 billion in exports. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news