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


NZ dollar little changed on week as US payrolls loom

NZ dollar little changed on week as US payrolls loom

By Paul McBeth

Oct. 2 (BusinessDesk) - The New Zealand dollar is largely unchanged against the greenback this week as improving local outlook eases fears of slowing growth, and as traders wait for US employment data, which will help them weigh up the timing and pace of looming Federal Reserve interest rate hikes.

The kiwi traded at 63.90 US cents at 5pm in Wellington from 63.84 cents on Friday in New York last week. It was little changed from 63.97 cents at 8am, and 64.08 cents yesterday. The trade-weighted index traded at 69.73 from 69.82 yesterday, and is heading for a 0.9 percent weekly gain.

The local currency rallied through the latter half of the week as rising dairy prices helped bolster flagging business sentiment, and provided traders with more confidence about the resilience of New Zealand's economy. Optimism over better-than-expected Chinese manufacturing PMI was tempered by a softer reading in the US. That sapped investors' appetite for risk-sensitive assets ahead of US non-farm payrolls, which will likely show the world's biggest economy added about 201,000 jobs last month.

"The Fed's employment mandate to get off zero (percent) has been met, it's more an argument for how quickly they get to neutral," said Sam Tuck, senior FX strategist at ANZ Bank New Zealand in Auckland. "Domestic drivers for New Zealand dollar weakness are easing, which will keep the kiwi on the stronger side versus our commodity brethren such as the kiwi/Aussie, but not in the kiwi/US."

Australian retail sales rose 0.4 percent in August, meeting economists' expectations, and turning around a decline in July. The kiwi traded at 90.98 Australian cents from 90.87 cents yesterday.

New Zealand commodity prices rose 5.5 percent in September, led by gains in dairy prices, according to the ANZ Commodity Price Index. The series snapped a five-month decline, and followed similar improvements in consumer and business confidence surveys.

The kiwi fell to 57.16 euro cents from 57.54 cents yesterday, and traded at 42.20 British pence from 42.37 pence. It declined to 76.69 yen from 77.10 yen yesterday, and slipped to 4.0614 Chinese yuan from 4.0760 yuan.

New Zealand's two-year swap rate fell about one-and-a-half basis points to 2.665 percent, and 10-year swaps declined one-and-a-quarter basis points to 3.4775 percent.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Government: David McLean Appointed As KiwiRail Chair

David McLean has been appointed as Chair of KiwiRail Holdings Ltd, the Minister for State Owned Enterprises Dr David Clark and Minister of Finance Grant Robertson announced today... More>>

Dairy NZ: ‘More Milk From Fewer Cows’ Trend Continues In A Record Year
Vodafone says it has 10,000 customers using its Wi-Fi Calling service. It took less than three months to reach that milestone; the service began operating in September... More>>

Statistics: Consents Remain At Record Levels
There were 47,715 new homes consented in the year ended October 2021, up 26 percent compared with the year ended October 2020, Stats NZ said today. "The year ended October 2021 marks another record for the annual number of new homes consented,” construction statistics manager Michael Heslop said... More>>

Fonterra: Lifts Forecast Farmgate Milk Price Range And Revises Earnings Guidance At First Quarter Update

Fonterra Co-operative Group today lifted its 2021/22 forecast Farmgate Milk Price range, reported a solid start to the 2022 financial year and revised its earnings guidance... More>>

Canterbury Museum: New Research - Bald Haast's Eagle Feasted On Moa Guts

New Zealand’s extinct Haast’s Eagle (Hieraaetus moorei), the largest known eagle, gulped down viscera like a vulture and may even have been bald, new research suggests... More>>

ABC Business Sales: Demand High For Covid-proof Businesses
Despite the continuing challenges facing businesses in this Covid environment, right now there are more buyers looking for a small-medium sized business than there are sellers in the market... More>>

PriceSpy: Producer Prices Increase
New Black Friday and Covid-19 Report* released by PriceSpy says people’s fear of stepping inside physical shops during big sales events like Black Friday has risen since last year; Kiwis are still planning to shop, but more than ever will do it online this year... More>>