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

 

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