Top Scoops

Book Reviews | Gordon Campbell | Scoop News | Wellington Scoop | Community Scoop | Search


NZ dollar may gain against the Australian

NZ dollar may gain against the Australian on jobless data

By Paul McBeth

Dec. 11 – The New Zealand dollar may gain against the Australian dollar on concern figures today will show the economy of New Zealand’s biggest export market is shedding jobs as the global economic slump spreads across Asia Pacific.

Australian jobless data will be released today, and a Reuters survey of economists predicts the country shed 15,000 jobs in November as the unemployment rate rose to 4.5% from 4.3%. With demand for metals drying up, Rio Tinto Group, the world’s third largest mining company, will lay off 14,000 people as it looks to cut spending by more than half. Figures yesterday showed China’s November imports plummeted 17.9% and exports declined 2.2%, the first drop in seven years.

Weak employment figures from Australia “could see the kiwi stronger” against its counterpart across the Tasman, said Tim Kelleher, corporate risk manager at ASB Bank. “I don’t see how the Australian numbers will be good.”

The New Zealand fell to 54.22 U.S. cents from 54.38 cents yesterday, and was down to 50.13 yen from 50.33. The kiwi was down to 82.51 Australian cents from 82.64 cents yesterday.

Kelleher said the kiwi may go as high as 85 Australian cents should the employment data be as weak as feared. The currency may trade between 53.92 U.S. cents and 55 cents today.

Earlier this week, Reserve Bank of Australia Governor Glenn Stevens told an audience of economists that the Chinese economy had “slowed much more quickly than anyone had forecast.”

U.S. stock markets, which have been a strong indicator of where the kiwi will move, were mixed as investors awaited the conclusion of government negotiations over the US$15 billion rescue package for the automaker industry.



© Scoop Media

Top Scoops Headlines


Keith Rankin: Narrow Vision: Subsidised Cars And Street Immunity
Problems make the world go round. Many of us – maybe the majority of workers, and certainly the majority of well-paid workers – earn our living addressing problems. A problem-free world would represent a major crisis for modern social-capitalism. (Yet standard economic theory continues to present the productive economy as a mechanism for 'satisfying wants', as distinct from 'addressing problems... More>>

Biden In Tokyo: Killing Strategic Ambiguity
Could it have been just another case of bumbling poor judgment, the mind softened as the mouth opened? A question was put to US President Joe Biden, visiting Tokyo and standing beside Japan’s Prime Minister Fumio Kishida: “You didn’t want to get involved in the Ukraine conflict militarily for obvious reasons. Are you willing to get involved militarily to defend Taiwan if it comes to that?” The answer: “Yes. That’s a commitment we made.”.. More>>

Dunne Speaks: Robertson's Budget Gamble On Treasury
The popular test of the success or failure of Grant Robertson’s fifth Budget will be its impact on the soaring cost of living. In today’s climate little else matters. Because governments come and governments go – about every six to seven years on average since 1945 – getting too focused on their long-term fiscal aspirations is often pointless... More>>

Digitl: Infrastructure Commission wants digital strategy
Earlier this month Te Waihanga, New Zealand’s infrastructure commission, tabled its first Infrastructure Strategy: Rautaki Hanganga o Aotearoa. Te Waihanga describes its document as a road map for a thriving New Zealand... More>>

Binoy Kampmark: Leaking For Roe V Wade
The US Supreme Court Chief Justice was furious. For the first time in history, the raw judicial process of one of the most powerful, and opaque arms of government, had been exposed via media – at least in preliminary form. It resembled, in no negligible way, the publication by WikiLeaks of various drafts of the Trans-Pacific Partnership... More>>

The Conversation: Cheaper food comes with other costs – why cutting GST isn't the answer

As New Zealand considers the removal of the goods and services tax (GST) from food to reduce costs for low income households, advocates need to consider the impact cheap food has on the environment and whether there are better options to help struggling families... More>>