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

 

Trade Plans: Prime Minister's Speech To International Business Forum

"The work to improve public services, build infrastructure, and solve social problems is possible only because we have enjoyed sustained, solid economic growth. A big reason for that is the Government’s consistent agenda of economic reform, and our determination to open up more opportunities for trade with the world." More>>

ALSO:

Media: TVNZ Flags Job Cuts To Arrest Profit Decline

Chief executive Kevin Kenrick said the changes were aimed at creating "a sustainable future video content business for TVNZ in an ever-changing media market." More>>

ALSO:

Reserve Bank: Wheeler Keeps OCR At 1.75%

Reserve Bank governor Graeme Wheeler kept the official cash rate unchanged at 1.75 percent, as expected, and reiterated his view that the benchmark rate doesn't need shifting for the foreseeable future. More>>

ALSO:

f work for Pumpkin Patch staff

Retail: Pumpkin Patch Brand, IP Sold To Catch Group

The receivers of failed children's clothing retailer Pumpkin Patch have confirmed that the company's brand and intellectual property have been sold to Australian online retailer Catch Group. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news