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

Dynamic New Zealand writers to feature at this year’s Edinburgh International Book Festival

20 Jul 2017 Arts
Dynamic New Zealand writers making waves at home and abroad will present their work and participate in this year’s Edinburgh... more

$9.4m to support students with English as a second language

26 Jun 2017 Education
22 June 2017 Students learning English as a second language will benefit from a further $9.4 million being made available under... more

Business

Rocket launch a huge step for New Zealand’s space industry

25 May 2017 Business News
25 May 2017 Minister for Economic Development Simon Bridges has congratulated the team at Rocket Lab on the successful launch of... more

Increased investor confidence welcomed

29 May 2017 Business News
29 May 2017 Commerce and Consumer Affairs Minister Jacqui Dean today welcomed the Financial Markets Authority annual survey results... more

Living

NZ's Sola Rosa heading "Back to You" in London - interview with Andrew Spraggon

6 Jul 2017 Entertainment By Charlotte Everett
Sola Rosa Soundsystem heads back to London with a show on 27 July – NZNewsUK London Editor Charlotte Everett caught up with... more

Spirit of “Mateship” prominent at London ANZAC commemorations

25 Apr 2017 ANZAC By Charlotte Everett
All photos copyright Peter Livingstone Photography. Lead image: HRH The Duke of York (far right), with the Hon Alexander Downer (far... more

Property

New Zealand Housing Affordability Measure released

10 May 2017 Property
10 May 2017 The Ministry of Business, Innovation and Employment’s (MBIE) new Housing Affordability Measure will allow the market... more

NZ house prices gain 11% in October

14 Nov 2016 Property
Article - BusinessDesk Monday 14 November 2016 10:28 AM NZ house prices gain 11% in October, driven by sales of higher value homes By... more

Migration

Suspension of decision making authority

25 Apr 2017 Migration
24 April 2017Immigration Minister Michael Woodhouse is taking steps to improve Immigration New Zealand’s decision making... more

Recognised Seasonal Employers employ more Kiwis

8 Feb 2017 Migration
7 Feb 2017 Immigration Minister Michael Woodhouse welcomes a report showing the vast majority of employers who take on seasonal... more

Travel

International visitors projected to spend $15 billion

12 May 2017 Travel & Tourism
12 May 2017 New Zealand’s tourism sector is forecast to grow significantly over the next seven years, with international... more

Tourism spending continues rise in 2017

10 May 2017 Travel & Tourism
27 April 2017 Tourism spending by both international and domestic visitors continues to grow strongly in 2017, Acting Tourism Minister... more

Sport

SPECIAL LIMITED OFFER: Barbarians v NZ, Twickenham 4 Nov - £55 tickets, All Blacks Supporters Bay

20 Jul 2017 Rugby
In 2009 the Barbarian team had a phenomenal line up of world class players; Matt Giteau, Victor Matfield, George Smith, Jamie Roberts,... more

Columns

Gordon Campbell on the Gareth Morgan crusade

11 Nov 2016 Opinion
Column - Gordon Campbell   Gordon Campbell on the Gareth Morgan crusade First published on Werewolf more

Gordon Campbell on the US election outcome

10 Nov 2016 Opinion
Column - Gordon Campbell   Gordon Campbell on the US election outcome more

Kiwi Success

Law Commissioner appointed

29 May 2017 Appointments
29 May 2017 Former Secretary for Justice Belinda Clark has been appointed as Law Commissioner, Justice Minister Amy Adams announced... more

Spencer to be Acting Governor of Reserve Bank

8 Feb 2017 Appointments
7 Feb 2017 Finance Minister Steven Joyce will appoint current Deputy Reserve Bank Governor Grant Spencer as the Acting Governor of... more

Recruitment

Online job ads continue growing strongly

26 Jun 2017 Recruitment
23 June 2017 Tertiary Education, Skills and Employment Minister Paul Goldsmith says the latest Jobs Online report shows strong growth... more

New employment resource for young people

1 Mar 2017 Recruitment
28 Feb 2017 Tertiary Education, Skills and Employment Minister Paul Goldsmith and Associate Education Minister Louise Upston have... more

s