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

 

NZ dollar heads for 1.2% weekly gain on strong jobs numbers

NZ dollar heads for 1.2% weekly gain on strong jobs numbers, RBNZ


By Rebecca Howard

Nov. 9 (BusinessDesk) - The New Zealand dollar is headed for a 1.2 percent weekly lift, underpinned by strong domestic jobs data and a slightly more upbeat central bank, although it pared some gains when the US Federal Reserve reinforced expectations it will rate interest rates in December.

The kiwi traded at 67.33 US cents at 5pm in Wellington versus 67.61 US cents at 8.36am in Wellington and 67.88 cents late yesterday. It was at 66.52 US cents late last Friday. The trade-weighted index was at 73.57 from 73.87.

It gained strongly after the domestic unemployment rate hit a decade-low in the third quarter of 3.9 percent Wednesday and after Reserve Bank governor Adrian Orr Thursday held the official cash rate at 1.75 percent. While the RBNZ reiterated it would remain on hold until Dec. 2020, it did omit a line from the previous statement that its next move could be "up or down," adding to the view that a rate cut was increasingly unlikely.

It pared some of those gains when the US Federal Open Market Committee reiterated it expects "further gradual increases" in the target range for the fed funds rate, giving the US dollar a lift and underscoring that while New Zealand rates may not go lower they also won't be rising any time soon.

Overall, however, the kiwi is still having its "employment honeymoon," said Martin Rudings, a senior foreign exchange dealer at OMF. "Still, by next week the market will have forgotten those numbers."

Rudings said the US dollar looks poised to rise now the uncertainty surrounding the US midterm elections has passed.

"The US dollar story is still intact ... the US has the story, they have the robust economy," he said.

The kiwi traded at 92.98 Australian cents from 93.28 cents yesterday. It was at 51.39 British pence from 51.67 pence yesterday, and at 59.59 euro cents from 59.40 euro cents. It was at 4.6747 Chinese yuan from 4.7007 yuan and at 76.65 yen from 77.04 yen.

New Zealand's two-year swap rate rose 3 basis points to 2.18 percent; the 10-year swaps rose 1 basis points to 3.09 percent.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Ground Rules: Government Moves To Protect Best Growing Land

“Continuing to grow food in the volumes and quality we have come to expect depends on the availability of land and the quality of the soil. Once productive land is built on, we can’t use it for food production, which is why we need to act now.” More>>

ALSO:

Royal Society: Calls For Overhaul Of Gene-Technology Regulations

An expert panel considering the implications of new technologies that allow much more controlled and precise ‘editing’ of genes, has concluded it’s time for an overhaul of the regulations and that there’s an urgent need for wide discussion and debate about gene editing... More>>

ALSO:

Retail: Card Spending Dips In July

Seasonally-adjusted electronic card spending dipped in July by 0.1 percent after being flat in June, according to Stats NZ. Economists had expected a 0.5 percent lift, according to the median in a Bloomberg poll. More>>

ALSO:

Product Stewardship: Govt Takes More Action To Reduce Waste

The Government is proposing a new way to deal with environmentally harmful products before they become waste, including plastic packing and bottles, as part of a wider plan to reduce the amount of rubbish ending up in landfills. More>>

ALSO:

Earnings Update: Fonterra Sees Up To $675m Loss On Writedowns

“While the Co-op’s FY19 underlying earnings range is within the current guidance of 10-15 cents per share, when you take into consideration these likely write-downs, we expect to make a reported loss of $590-675 million this year, which is a 37 to 42 cent loss per share." More>>

ALSO: