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

$96.5 million for new science research programmes

3 Sep 2015 News
Science and Innovation Minister Steven Joyce has today announced funding for 48 new science research programmes, for a total... more

10 year passports will be delivered early

24 Aug 2015 News
10 year passports will be delivered early Internal Affairs Minister Peter Dunne today welcomed the Government Administration Select ... more

Business

CORRECT: Government, Auckland iwi reach agreement

3 Sep 2015 Business News By Fiona Rotherham
  CORRECT: Government, iwi reach agreement for private housing on Crown land in Auckland (Removes reference to selling land in... more

Air NZ to defend US class action over air cargo cartel claim

3 Sep 2015 Business News By Paul McBeth
  Sept. 3 (BusinessDesk) - Air New Zealand, the national carrier, will defend a multi-billion dollar class action in the US... more

Living

It’s Snoopy’s Birthday!

10 Aug 2015 Entertainment
20th Century Fox is celebrating Snoopy’s birthday ahead of the release of the first animated Peanuts movie SNOOPY AND CHARLIE... more

NZ's Sola Rosa Sound System heads to London - interview with Andrew Spraggon

6 Aug 2015 Entertainment By Charlotte Everett
Sola Rosa Sound System comes to London on 20 August – NZNewsUK London Editor Charlotte Everett had a chat with frontman Andrew... more

Property

Auckland house sales climb to 15-yr high for month of August

3 Sep 2015 Property By Paul McBeth
Article - BusinessDesk   Auckland house sales climb to 15-year high for month of August, prices stall Sept. 3 (BusinessDesk) -... more

Auckland house price growth stalls in July: Barfoot

5 Aug 2015 Property By Tina Morrison
  Auckland house price growth stalls in July as properties 'fully priced', Barfoot says Aug. 5 (BusinessDesk) - Auckland house... more

Migration

NZ net migration reaches new annual record in June

21 Jul 2015 Migration By Paul McBeth
  NZ net migration reaches new annual record in June, swelled by Indian, Chinese students July 21 (BusinessDesk) - New Zealand... more

NZ migration rises to new annual record in May

22 Jun 2015 Migration By Suze Metherell
  NZ migration rises to new annual record in May, closing in on Treasury's upside scenario June 22 (BusinessDesk) - New Zealand... more

Travel

Air NZ to continue alliance with Cathay Pacific

25 Aug 2015 Travel & Tourism By Joshua Riddiford
Air NZ to continue alliance with Cathay Pacific, targets Asian tourists Aug. 25 (BusinessDesk) - Air New Zealand's has had its... more

Partnerships push New Zealand’s profile abroad

25 Aug 2015 NZ Tourism
25 August 2015 Campaigns promoting New Zealand as an outstanding visitor destination reached more than 1.2 billion people globally... more

Sport

NZ Rowing: Kiwi crews book A finals

3 Sep 2015 Sport
3 Sept 2015 Emotions ran high on an action packed day four at the 2015 World Rowing Championships with eight New Zealand crews taking... more

Silver Ferns to take on world’s best!

3 Sep 2015 Netball
Netball’s greatest rivalry will take centre stage in October when the Silver Ferns host the world champion Australian Diamonds... more

Columns

Gordon Campbell on the flag campaign

25 Aug 2015 Opinion
Gordon Campbell on the flag campaign So far, the public has treated the government’s flag campaign with something between... more

Gordon Campbell on Donald Trump, and Dr Dre

19 Aug 2015 Opinion
Gordon Campbell on Donald Trump, and Dr Dre   For the past few months, you, me, and Rupert Murdoch have been waiting for the... more

Kiwi Success

Library and Information Advisory Commission Appointments

3 Sep 2015 Appointments
Library and Information Advisory Commission Appointments Internal Affairs Minister Peter Dunne today announced three new... more

Former cricketer Simon Doull signs with NZME

19 Aug 2015 Appointments
Former cricketer and established broadcaster Simon Doull signs with NZME 19 August 2015 – New Zealand Media and Entertainment... more

Recruitment

Eleven straight quarters of job growth

5 Aug 2015 Recruitment
The latest labour market data shows continued job growth, with 7,000 more people employed over the last quarter and 69,000 more New ... more

NZ unemployment rate rises to 5.9% on weaker jobs growth

5 Aug 2015 Recruitment By Paul McBeth
NZ unemployment rate rises to 5.9% as jobs growth lags behind growing population Aug. 5 (BusinessDesk) - New Zealand's jobless rate... more