NZ dollar declines as US unemployment, Euro elections loom   4 May 2012

Article - BusinessDesk

NZ dollar declines as US unemployment, Euro elections loom

By Paul McBeth

May 4 (BusinessDesk) - The New Zealand dollar is poised for a 2.7 percent decline over the week as investors prepare for US jobs figures and general elections in France and Germany over the weekend.

The kiwi fell to 80.01 US cents at 5pm from 82.21 cents last week. It's little changed from 79.91 cents at 8am and down from 80.58 cents yesterday. The trade-weighted index fell to 71.32 from 71.79 yesterday, and is poised for a 2 percent weekly decline.

Westpac Bank economists expect the kiwi to fall to 78 US cents after an unexpectedly high unemployment rate of 6.7 percent prompted traders to quit the kiwi, which pushed it out of a 2 US cents trading band that it had been stuck in for almost nine weeks.

Investors are waiting on non-farm payrolls data on Friday in the US, which are expected to show the world's biggest economy added 160,000 jobs last month. If it comes in below forecasts, traders will probably sell higher-yielding assets such as equities and the kiwi dollar.

If payrolls disappoints, "it's all go for equities and the kiwi - whichever way equities go" dictates direction for the New Zealand dollar, said Imre Speizer, market strategist at Westpac Banking. "We have a 78 US cents target" for the kiwi until at least June and maybe into September, he said.

Analysts will also be looking at the outcome of the French and Greek general elections this weekend, with both nations' governments important to shore up the Euro-zone's stability. Greece agreed to major austerity measures to secure a bail-out by its Euro-zone partners and the International Monetary Fund, while France is the second-biggest economy in the continent.

Speizer said the French election is probably the more important of the two, because if it's "not going to see eye-to-eye with Berlin, it will impact on the Euro-zone as a whole."

The minutes from this week's Reserve Bank of Australia meeting showed a slower growth track of 3 percent for the year, and a more benign inflation outlook. The central bank unexpectedly cut the target cash rate half a percentage point to 3.75 percent on Tuesday.

The kiwi fell to 77.99 Australian cents from 78.19 cents yesterday, and was little changed at 64.66 yen from 65.65 yesterday. It fell to 60.83 euro cents from 61.33 cents yesterday, and declined to 49.39 pence from 49.81 pence.

(BusinessDesk)

Add a comment

Bookmark and Share

News

ANZAC 2015 in pictures

25 Apr 2015 News
NZ News UK attended several ANZAC ceremonies in Auckland today. These photos were taken at the Northcote Community where the... more

ANZAC 2015: Anzac Messages, NZ Prime Minster and Governor-General

24 Apr 2015 News
Anzac Day 'We will remember them'   Anzac Day 2015 – Message from the Governor-General of New Zealand On 25 April every... more

Business

Mercer's CEO Shepherd, CFO Blathwayt quit the manufacturer

24 Apr 2015 Business News
Article - BusinessDesk   Mercer's CEO Shepherd, CFO Blathwayt quit the manufacturer By Suze Metherell April 24 (BusinessDesk) -... more

Oracle-owned boatbuilder has had two government grants

23 Apr 2015 Business News By Fiona Rotherham
  Oracle-owned boatbuilder has had two government grants in three years April 23 (BusinessDesk) - Core Builders Composites,... more

Living

Britain remembers the ANZACs - 100 years on

25 Apr 2015 ANZAC By Charlotte Everett
100 years after allied forces landed in Gallipoli, 25 April – ANZAC Day – has been commemorated in the UK officially for... more

A Kiwi's guide to ANZAC in Europe - our list of events across the UK, Ireland and beyond

24 Apr 2015 ANZAC By Charlotte Everett
Tomorrow marks the 100th ANZAC Day, and if you are a Kiwi or Aussie far from home there are plenty of events on to enable you both to... more

Property

New process for red zone Crown offers

21 Apr 2015 Property
Canterbury Earthquake Recovery Minister Gerry Brownlee has announced a process to give everyone a say on the Crown offers to... more

NZ house prices rise 8% in March, led by 13% Auckland jump

14 Apr 2015 Property By Tina Morrison
April 14 (BusinessDesk) - New Zealand residential property prices rose in March, led by Auckland where housing supply isn't meeting... more

Migration

NZ migration hits new annual record in March

23 Apr 2015 Migration By Tina Morrison
April 23 (BusinessDesk) - New Zealand migration hit a new annual record in March, as more students arrived from India and China and... more

PM plays down claim war criminals are living in NZ

2 Mar 2015 Migration
Prime Minister John Key says he is not aware of any suspected war criminals from the former Yugoslavia in New Zealand. The claim that... more

Travel

Air NZ's Houston link paves way for United Airlines tie-up

17 Apr 2015 Travel & Tourism By Fiona Rotherham
  Air NZ's Houston service paves the way for partnership with United Airlines, analysts say April 17 (BusinessDesk) - Air New... more

Wellington Airport revised fees 'just within' OK range

17 Apr 2015 Travel & Tourism By Tina Morrison
  Wellington Airport's revised fees are 'just within' acceptable range of returns, regulator says April 17 (BusinessDesk) -... more

Sport

Price and Wesko Nail the Dressage at Kentucky

25 Apr 2015 Equestrian
Kiwi eventer Tim Price and Wesko have delivered their best-ever dressage score to sit at the front of the field this morning at the... more

ISAF Sailing World Cup Hyeres

25 Apr 2015 Sailing
ISAF Sailing World Cup Hyeres: Burling and Tuke still lead, one more day of fleet racing At the end of day three at ISAF Sailing ... more

Columns

Gordon Campbell on the hair-pulling finale and Gallipoli

24 Apr 2015 Column
  Gordon Campbell on the hair-pulling finale, and the real hero of Gallipoli Don’t know about you, but when hi-jinks and... more

Gordon Campbell on UE pass rates & university dropout rates

14 Apr 2015 Opinion
Houston, there is clearly a problem with (a) the plunge in pass rates for University Entrance qualifications, which has been ... more

Kiwi Success

Fonterra reshuffles management team

24 Apr 2015 Appointments By Fiona Rotherham
  Fonterra reshuffles management team to speed up value-add strategy April 24 (BusinessDesk) - Fonterra Cooperative Group, the... more

TVNZ and RNZ appointments announced

23 Apr 2015 Appointments
New Zealand Government TVNZ and RNZ appointments announced Broadcasting Minister Amy Adams today announced the appointment of Sussan... more

Recruitment

Apprenticeship scheme launched

18 Apr 2015 Recruitment
The He Toki ki te Mahi Apprenticeship Training Trust was launched by Prime Minister, the Rt Hon John Key at Rehua Marae in ... more

Chinese rail workers must be paid minimum wage

17 Apr 2015 Recruitment
KiwiRail must immediately stop further Chinese engineers from working here until they can guarantee they are being paid the New... more