NZ dollar declines as US unemployment, Euro elections loom 4 May 2012
- MARKET CLOSE: NZ shares fall as Spark drops ahead of Fed Business
- NZ dollar pares gain in lead up to Fed review Business
- Tait Communications buys Brazilian partner Business
- Poll shows Nats extending lead, Labour/Greens fading Business
- Duco Promotions taps Martin Snedden for new top job Business
- Nutricia needs 18 months to recover from botulism scare: CEO Business
- Ryman expands board as veteran director Clements departs Business
- GCSB's 'Cortex' sought tie-up with ISP Business
- NZ balance of payments deficit hits cyclical low point Business
- RESEND: Restaurant Brands 2Q sales rise 5.8% 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.
16 Sep 2014 News
Women’s Affairs Minister Jo Goodhew has celebrated the 121st anniversary of women’s suffrage with an event recognising... more
15 Sep 2014 Business News
Article - BusinessDesk Greenwald posts article on spying allegations ahead of 'Moment of Truth' event By Fiona Rotherham Sept.... more
15 Sep 2014 Environment
Sept. 15 (BusinessDesk) - New Zealand visual marketing software company Shuttlerock has added Lady Gaga to its client list. While... more
3 Sep 2014 Property
Sept. 3 (BusinessDesk) - Auckland house sales fell for a third month in August and the number of listings remained muted in the... more
11 Sep 2014 Migration
Sept. 11 (BusinessDesk) - The Reserve Bank is keenly watching the impact New Zealand's decade-high net migration inflow is having on... more
11 Sep 2014 Travel & Tourism
Sept. 11 (BusinessDesk) - Plans for a $350 million runway extension for Wellington International Airport would provide the capital... more
15 Sep 2014 Sport
Emirates Team New Zealand Today’s pictures are here Emirates Team New Zealand has won Act 6 of the Extreme Sailing series today... more
16 Sep 2014 Opinion
Gordon Campbell on the aftermath of the Greenwald/Snowden revelations [See correction below. link] The credibility issues... more
15 Sep 2014 Opinion
Column - Gordon Campbell Gordon Campbell on the Glenn Greenwald revelations All that hanging out with the All Blacks clearly... more
10 Sep 2014 People
The New Zealand Psychological Society (NZPsS) -the largest membership association for psychologists in New Zealand, offers awards... more
11 Sep 2014 Recruitment
Paramedics in New Zealand jump at opportunity of a clinical career in London Paramedics hoping for a chance to work for the... more
22 Aug 2014 Recruitment
The loss of up to 100 jobs at Croxley stationery in Auckland is devastating news for their families and the local Avondale... more