NZ dollar declines as US unemployment, Euro elections loom 4 May 2012
- NZ dollar heads for 1.2 percent weekly gain vs. Aussie Business
- Wool Equities, Primary Wool Coop in tie-up talks Business
- Green lobby cries foul on draft EEZ oil exploration rules Business
- NZ manufacturing activity grows in November Business
- NZ dollar gains vs. Aussie after RBA talks down currency Business
- MARKET CLOSE: NZ shares mixed; Hallenstein nervous on sales Business
- Slingshot pleads guilty, fined $250K for slamming tactics Business
- NZ dollar jumps to 5-year high vs. A$ as RBNZ more hawkish Business
- Windflow seeks another $4M Business
- Export concentration into China ‘a concern’: RBNZ’s Wheeler Business
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.
13 Dec 2013 News
New Zealand Government Hon Anne TolleyMinister of Police Hon Simon BridgesMinister of Labour 13 December 2013 Underground Mines... more
13 Dec 2013 Business News
Article - BusinessDesk Infratil seeks up to $100 mln in new five-year infrastructure bond Dec. 13 (BusinessDesk) - Infratil,... more
13 Dec 2013 Business News
Article - BusinessDesk Green lobby cries foul on draft EEZ oil exploration rules Dec. 13 (BusinessDesk) – The government... more
13 Dec 2013 Lifestyle
Coca-Cola 13 December, 2013 - Trusts Arena, Auckland BMX Olympic Silver Medallist Sarah Walker joined 150 secondary school... more
13 Dec 2013 Lifestyle
University of Otago Friday 13 December 2013 Study shows Spirit of Adventure programme fosters longer-term youth resilience New... more
12 Dec 2013 Property
New Zealand Government New 32-unit complex opened in Johnsonville Housing Minister Dr Nick Smith today officially opened 32 new ... more
13 Dec 2013 Migration
New Zealand Government Business visa changes to create jobs & growth Immigration Minister Michael Woodhouse has announced a new... more
12 Dec 2013 Travel & Tourism
New Zealand Government Hon Nathan GuyMinister for Primary Industries 12 December 2013 Government Industry Agreements to strengthen... more
13 Dec 2013 Cricket
New Zealand's innings and 73-run win in the second cricket test against the West Indies was a comprehensive way to end a 10-test... more
13 Dec 2013 Column
Column - Gordon Campbell Gordon Campbell on the Rebstock investigation of the MFAT leaks by Gordon Campbell Having spent... more
10 Dec 2013 Column
Column - Gordon Campbell Gordon Campbell on the latest TPP leaks, and our shabby treatment of asylum seekers by Gordon ... more
13 Dec 2013 People
Rotorua District Council News Release Friday 13 December 2013 Primary schools’ environmental champions lauded at... more
11 Dec 2013 Recruitment
CPIT For immediate release 11/12/2013 Partnership provides much needed skills for the rebuild As the demand for rebuild workers... more