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

 


NZ dollar gains vs. A$ as Australian jobless rate climbs

NZ dollar gains vs. A$ as Australian unemployment rate climbs to decade-high

By Paul McBeth

Aug. 7 (BusinessDesk) - The New Zealand dollar rose against its trans-Tasman counterpart after government figures showed Australian unemployment rose to a decade high in July.

The kiwi gained to 91.20 Australian cents at 5pm in Wellington from 90.61 cents immediately before the release and 90.58 cents yesterday. It was little changed at 84.67 US cents at 5pm from 84.70 cents at 8am, up from 84.28 cents yesterday.

Australia's unemployment rate rose to 6.4 percent in July from 6 percent in June, according to Bureau of Statistics. That's the highest level of joblessness since August 2002, and raised concern the Reserve Bank of Australia may cut interest rates again. The RBA kept the key rate at 2.5 percent this year, retaining its view that a period of interest rate stability is the most prudent course.

"The unemployment number might provoke people to price in a bit more chance of a rate cut," said Martin Rudings, senior dealer foreign exchange at OMF. "If that gains any traction, then the kiwi/Aussie cross will go back up to the 93s."

OMF's Rudings said the persistent strength of the kiwi against the greenback and on a trade-weighted basis was getting more out of line with commodity prices, and could prompt the Reserve Bank to try to talk the currency lower, or even intervene.

Local data today showed New Zealand property values rose at a slower annual pace in July as rising interest rates, restrictions on low-equity mortgage lending and the onset of winter cooled the housing market.

Investors will be watching the European Central Bank and Bank of England policy meetings in the Northern Hemisphere trading session. Neither central bank is expected to move on policy, although deteriorating economic data in Europe may spur a response from the ECB.

The kiwi rose to 63.24 euro cents at 5pm in Wellington from 63.05 cents yesterday, and gained to 50.23 British pence from 49.96 pence. It traded at 86.53 yen from 86.44 yen yesterday. The trade-weighted index increased to 79.39 from 79.07 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