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

 

NZ dollar firms ahead of labour market data

NZ dollar firms ahead of labour market data, US midterm elections


By Margreet Dietz

Nov. 7 (BusinessDesk) - The New Zealand dollar strengthened against the US dollar as investors eyed the latest domestic labour market data as well as the US congressional midterm elections.

The kiwi traded at 66.69 US cents at 8.30am in Wellington versus 66.57 US cents late yesterday. The trade-weighted index was at 72.77 from 72.61.

The first results of the closely-watched US mid-term elections, held today, will start arriving this afternoon New Zealand time.

"Prediction markets suggest that the Democrats will win control of the House of Representatives, with the Republicans retaining a slim majority in the Senate," Liam Peach, assistant economist at Capital Economics, said in a note. "We doubt that this outcome would have much impact on the US stock market. Aside from the fact that it is anticipated, a divided Congress would mean legislative gridlock and little prospect of big changes in fiscal policy."

“Admittedly, prediction markets have not had much success in forecasting election outcomes in recent years, including the one in 2016,” Peach added. “But even if the result is not what they are signalling, we doubt that there will be a big reaction.”

First, however, the latest New Zealand labour market data are due this morning, a day ahead of the Reserve Bank’s monetary policy decision and statement.

“New Zealand labour market data today are expected to show the unemployment rate ticking down, with no smoking gun expected in the wage inflation data,” Bank of New Zealand senior markets strategist Jason Wong said in a note. “Coming one day ahead of the RBNZ’s MPS, market reaction should be fairly well contained.”

Investors will also keep an eye on the latest data on China’s foreign exchange reserves, due later in the day, Wong added.

“The market will be interested in how much China’s foreign reserves will drop, an indicator of how much intervention the People’s Bank of China did in October,” he said.

The kiwi traded at 92.39 Australian cents from 92.42 Australian cents.

The New Zealand dollar traded at 50.92 British pence from 51.10 British pence Tuesday. It was at 4.6110 Chinese yuan from 4.5885 yuan and traded at 75.59 yen from 75.31 yen. It was at 58.42 euro cents from 58.39 cents Tuesday.

(BusinessDesk)

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Tourism: Employers Welcome Back Working Holidaymakers

Tourism businesses gearing up for the return of Australian visitors from next week will be relieved to learn that they will also have access to an offshore pool of much-needed job candidates, Tourism Industry Aotearoa says. Tourism employers around ... More>>

Commerce Commission: Latest Broadband Report Confirms Improved Performance Of Premium Fibre Plans

The latest report from the Commerce Commission’s Measuring Broadband New Zealand programme shows that the performance of Fibre Max plans has improved substantially. This follows a collaboration between the Commission, its independent testing partner, ... More>>

Air New Zealand: Capital Raise Deferred

Air New Zealand has decided to defer its planned capital raise to later in 2021 allowing more time to assess the impacts of recent developments on the airline’s path to recovery. 'We’ve seen some clearing of COVID-19 clouds recently, with ... More>>

Commerce Commission: Cartel Conduct Now Punishable By Up To 7 Years’ Jail Time

Cartel conduct can now be punished with a term of imprisonment of up to 7 years, after the Commerce (Criminalisation of Cartels) Amendment Act 2019 came into effect today. Cartel conduct includes price fixing, market allocation and bid rigging (see ... More>>

Stats NZ: New Report Shows Impact Of Demands On Land In New Zealand

A new environmental report released today by the Ministry for the Environment and Stats NZ, presents new data on New Zealand’s land cover, soil quality, and land fragmentation. The land cover data in the report, Our land 2021 , provides the most ... More>>

ALSO:

Stats NZ: March Card Spending Rebounds Despite COVID

There was a lift in retail card spending in March following a fall in the lockdown-disrupted February month, Stats NZ said today. Seasonally adjusted retail card spending rose by $53 million (0.9 percent), compared with February 2021. Visit our website to read ... More>>

PwC: Outcome Of Review Into Air New Zealand Gas Turbines Business

Air New Zealand has received the report into its Gas Turbines business from independent external advisers PwC. Air New Zealand Chairman Dame Therese Walsh says the report identified a range of effective controls in the Gas Turbines revenue contracting ... More>>