News & Opinions Home
Market Place
Reuters New Zealand
NZ dlr struggles amid caution, as U.S. data eyed
Friday November 6, 09:56 AM
WELLINGTON, Nov 6 (Reuters) - The New Zealand dollar NZD= struggled on Friday in the aftermath of poor job data and central bank comments as the U.S. currency rose ahead of employment report.
* Kiwi resumes around $0.7210, compared with $0.7187/92 in late local trade on Thursday, as appetite for risky assets such as the kiwi was muted and investors readied for U.S. non-farm payrolls later on Friday.
* Kiwi hits an offshore low of $0.7160 after data showed NZ's jobless rate hit a nine-year high, backing the case for rates to be held low well into next year.
* Weaker than expected NZ labour data, which showed unemployment rising to a nine year high, pressured kiwi along with Reserve Bank of NZ governor's comments that financial markets were mistakenly treating the Australian and NZ economies as similar, when the reality was that NZ's recovery was slow and vulnerable. See [ID:nWEL164600].
* Markets see Bollard's comments as a "green light" to sell kiwi against the Aussie NZDAUD=R, sending it to a three-month low and pressuring the kiwi lower against other crosses.
* However, markets still pricing in a full rate hike in March because of improving local economic data.
* European Central Bank and Bank of England both leave rates unchanged, but express more optimism about the economic outlook. [ID:nL5394422]
* Kiwi seen susceptible on the downside as it fails to rally when equities are doing well. Strong resistance seen around $0.7300, with support expected around $0.7170.
* NZ bonds steady, as steady U.S. rate outlook favours short-end U.S Treasuries, but upcoming supply weighs on the long end of the curve.
Next Article: First quarter profit recorded by Telecom
Previous article: Health insurers warn of unsustainable claim costs
Top Headlines
Xero half year revenues soar
Friday November 6, 01:09 PM - NZPA
Accounting software company Xero reported half year revenues up 282 percent to $1.27 million. .. Read More
Sharp rise in investor confidence
Friday November 6, 01:07 PM - Newstalk ZB
The latest ASB survey shows investor confidence is at its highest level in nearly two years. .. Read More
Nuplex predicts profit to surge as it mulls NZ future
Friday November 6, 11:59 AM - NZPA
Resins and chemicals maker Nuplex says full year operating profit after tax could rise by up to 78 percent, while it is also .. Read More
Calculators
Copyright © 2009 Yahoo! All rights reserved.
Yahoo!Xtra: A Yahoo!7/Telecom New Zealand Company.