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

 

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Export Values Down: NZ Posts Biggest Annual Trade Deficit In 7 Years

New Zealand has recorded its biggest annual trade deficit since April 2009, reflecting weaker prices of agricultural commodities such as dairy products, beef and lamb, and increased imports of vehicles and machinery. More>>

ALSO:

Currency Events: NZ's New $5 Note Wins International Banknote Award

New Zealand’s new Brighter Money $5 note has been named Banknote of the Year in a prestigious international competition. The $5 note was awarded the IBNS Banknote of the Year title at the International Bank Note Society’s annual meeting. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news