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


NZ dollar eases on strong US jobs growth; focus on RBNZ

By Rebecca Howard

Nov. 5 (BusinessDesk) - The New Zealand dollar eased against the greenback after strong US jobs and wages growth reinforced expectations the Federal Reserve will raise rates in December.

The kiwi traded at 66.36 at 8am in Wellington versus 66.52 at 5pm last Friday. The trade-weighted index was at 72.42 from 72.74.

US employers added 250,000 jobs to their payrolls in October and unemployment held at a 49-year low of 3.7 percent. Also, wages increased 3.1 percent from a year earlier, the biggest year-over-year gain for average hourly earnings since 2009.

Markets, however, are still jittery about US-China trade tensions. OMF private client manager Stuart Ive noted that White House economic adviser Larry Kudlow had told CNBC that the president had not asked US officials to draw up a proposed trade plan for China despite that being reported by Bloomberg.

Kudlow added that he was not as optimistic as he once was about the two nations reaching a deal and additional tariffs on Chinese imports would be ready, depending how talks go. The US president, however, is still predicting the two sides can reach ‘a good deal.’

Looking ahead, the main domestic event for the kiwi this week is the central bank's monetary policy statement Thursday. While the RBNZ is expected to keep rates on hold at a record low 1.75 percent the focus will be on whether or not the bank is more upbeat about the domestic economy and whether it no longer signals a rate cut may be possible.

Ive, however, said that while the New Zealand dollar has been performing well on the back of improving local data "this is unlikely to make the RBNZ suddenly change tone and become hawkish, far from it."

New Zealand jobs data Wednesday will also be closely watched for any signs of inflationary pressure coming through wages.

The kiwi traded at 50.88 British pence from 51.21 British pence Friday, as investors speculate about Brexit progress.

The kiwi traded at 92.22 Australian cents from 92.44 Australian cents. It was at 4.5718 Chinese yuan from 4.6100 yuan and traded at 75.03 yen from 75.97 yen. It was at 58.18 euro cents from 58.36 cents yesterday.



© Scoop Media

Business Headlines | Sci-Tech Headlines


Super Fund/Canada Bid v NZTA: Tow Preferred Bidders For Auckland Light Rail

The two preferred delivery partners for Auckland light rail have been chosen and a final decision on who will build this transformational infrastructure will be made early next year, Minister of Transport Phil Twyford announced. More>>


9.3 Percent: Gender Pay Gap Unchanged Since 2017

“While it has remained flat since 2017, the gender pay gap has been trending down since the series began in 1998, when it was 16.2 percent,” labour market statistics manager Scott Ussher said. More>>


Ex-KPEX: Stuff Pulls Pin On Media Companies' Joint Ad-Buying Business

A four-way automated advertising collaboration between the country's largest media companies is being wound up after one of the four - Australian-owned Stuff - pulled the pin on its involvement as part of a strategic review of its operations ... More>>

Bus-iness: Transdev To Acquire More Auckland And Wellington Operations

Transdev Australasia today announced that it has agreed terms to acquire two bus operations in Auckland and Wellington, reaching agreement with Souter Investments to purchase Howick and Eastern Buses and Mana Coach Services. More>>