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

 

NZ dollar falls against Aussie after strong Oz jobs data

NZ dollar falls against Aussie after strong Oz jobs data

By Jenny Ruth

April 18 (BusinessDesk) - The New Zealand dollar was little changed against most currencies but fell against the Australian dollar and the yen after figures showing stronger than expected jobs creation in March.

The kiwi was trading at 93.55 Australian cents at 5pm in Wellington from 93.66 at 8am and at 75.15 Japanese yen from 75.30. It was at 67.16 US cents from 67.19 and the trade-weighted index was at 72.69 points from 72.71.

“The market had a bit of a heart flutter when the Australian labour market data came out,” says Peter Cavanaugh, the senior client advisor at Bancorp Treasury Services.

The figures showed 25,700 new jobs were created in March, well ahead of expectations of 12,000. All the increase was in full-time jobs with part-time positions falling by 22,600.

However, the participation rate also rose so the unemployment rate ticked up a point to 5 percent.

“On balance, the data was pretty good,” Cavanaugh says. “It reinforces the words of the respective banks. The RBA is going nowhere and the RBNZ is talking everybody into believing that the next move is down” in the official cash rate, he says.

The New Zealand dollar fell as low as 93.47 Australian cents after today’s data and has fallen from 97.30 on March 23.

Apart from excitement over the Australian jobs data, the market was consolidating after its sharp moves yesterday on the back of weaker than expected New Zealand inflation numbers. They reinforced expectations of an OCR cut, possibly as early as May.

The New Zealand two-year swap rate rose to 1.6432 percent from 1.6389 yesterday while the 10-year swap rate sank to 2.2475 percent from 2.2550.

The New Zealand currency was trading at 51.48 British pence from 51.52, at 59.48 euro cents from 59.45, and at 4.4954 Chinese yuan from 4.4930.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Marsden Pipeline Rupture: Report Calls For Supply Improvements, Backs Digger Blame

The report makes several recommendations on how the sector can better prevent, prepare for, respond to, and recover from an incident. In particular, we consider it essential that government and industry work together to put in place and regularly practise sector-wide response plans, to improve the response to any future incident… More>>

ALSO:

Oil Scare: Trump Authorises Use Of Emergency Crude Stockpile

The New Zealand dollar fell against the US dollar after President Donald Trump authorised the use of the country's emergency crude stockpile after the weekend attack on Saudi Arabia’s major oil facilities. More>>

ALSO:

Pre-Post-Brexit Deal Talks: UK Trade Minister Visits Wellington

New Zealand should get a better deal for exports of sheepmeat, beef and dairy products into the United Kingdom after Brexit, the British Minister of State for Trade, Liz Truss, said in Wellington today. More>>

ALSO:

Not-Very Well: Tamarind Halts Tui Drilling; OMV Assesses Options

Tamarind Resources has halted drilling at its Tui oil field off the Taranaki coast after the first of the three planned wells came up dry. Managing director Ian Angell says that despite the “unexpected” result from the first well, the firm believes the other two prospects are worth pursuing. More>>

ALSO:

Seeking 'Clarity': Crown To Appeal Southern Response Decision, Offers Costs

“It is our intention that the clarity that will come from the outcome of these proceedings will enable the Crown to work with Southern Response to provide a soundly based proactive solution to those people that are affected.” More>>