NZ dollar declines as US unemployment, Euro elections loom 4 May 2012
- MARKET CLOSE: NZ stocks rise on Xero's NYSE listing plans Business
- NZ dollar slides to 6-week low on intervention talk Business
- Moa makes $500k placement, offers $5.25 mln in rights Business
- Canadian Lynx Platinum wins South Island platinum explorati Business
- NZ Post give network services contract to Vodafone Business
- National signals short election campaign with Aug 23 launch Business
- FMA satisfied with 'pre-offer' talks before prospectuses Business
- NZ posts eighth monthly trade surplus in June Business
- Sealord appoints ex-McCain Food's exec Yung as new CEO Business
- NZ dollar falls after RBNZ says kiwi strength 'unjustified' 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.
24 Jul 2014 News
Maori Affairs Minister, Hon Dr Pita Sharples, says he is pleased that the Maori Language Bill passed its first reading this... more
24 Jul 2014 News
Cricket World Cup lead shares wisdom on hosting major events in small town New Zealand Following the successful completion of the... more
24 Jul 2014 Business News
Article - BusinessDesk NZ dollar slides to 6-week low as RBNZ's Wheeler invokes intervention criteria By Paul McBeth July 24 ... more
22 Jul 2014 Business News
Article - BusinessDesk Moa boosts first quarter sales, expects higher margins to drive profits By Tina Morrison July 22 ... more
23 Jul 2014 Entertainment
New Zealand Film Commission New Zealand Film 'The Dead Lands' to Have Toronto World Premiere Maori action epic The Dead Lands will... more
22 Jul 2014 Entertainment
Playing at this year’s New Zealand International Film Festival, Cap Bocage is a close-up exploration of the forces that came... more
14 Jul 2014 Property
July 14 (BusinessDesk) - New Zealand house sales fell in June from a year earlier, led by properties of $400,000 or less, indicating... more
11 Jul 2014 Migration
If you’re in the UK on a Tier 1 (General) visa, you’ll need to apply for an extension as soon as possible. The deadline... more
24 Jul 2014 Travel & Tourism
An increasing number of cycleways are attracting tourists to regions and scenic parts of New Zealand and a special session at the... more
17 Jul 2014 Travel & Tourism
Associate Tourism Minister Todd McClay has congratulated Tourism New Zealand on winning the Pacific Asia Travel Association’s... more
24 Jul 2014 Commonwealth Games
24 Jul 2014 Opinion
One of the selling points in New Zealand’s campaign for a temporary seat on the Security Council is that we have a pluckily... more
23 Jul 2014 Appointments
New Zealand Government Appointments to Public Trust Board Justice Minister Judith Collins today announced the appointment of ... more
23 Jul 2014 Appointments
Commerce Minister Craig Foss today announced four reappointments to various independent Crown entities and statutory... more
14 Jul 2014 Recruitment
New Zealand Government Hon Steven Joyce Minister for Tertiary Education, Skills and Employment Hon Hekia Parata Minister of... more