News Column

NZ Dollar Slides Against Yen, Australian Dollar

September 5, 2014



CANBERA (Alliance News) - The New Zealand dollar slipped against the yen and the Australian dollar in European deals on Friday, as traders became cautious ahead of the US jobs data, due shortly.

The nonfarm payrolls may probably show an increase of about 230,000 jobs in August compared to the addition of 209,000 jobs in July. Jobs data being a closely watched gauge for the Fed's monetary policy, any strong figures would bring forward the timings of rate increase by the bank.

The kiwi came under pressure in early deals after New Zealand Finance Minister Bill English's comments that NZ's inflationary pressure has eased and need to raise borrowing costs has moderated.

In an interview in Wellington, English told that NZ dollar will continue to fall against the US dollar as the US economy is improving. "You can see the markets gearing up for a shift in US interest rates eventually," he added.

English also cautioned that weak dairy prices represent a "downside risk" for the economy.

The kiwi slipped to a 2-day low of 87.15 against the yen, compared to 87.40 hit late New York Thursday. The next possible downside target for the kiwi-yen pair lies around the 86.00 region.

A leading indicator of economic activity in Japan continued to increase in July, though at a less than expected rate, preliminary figures from Cabinet Office showed.

The leading index rose to 106.5 in July from 105.9 in June, when it had risen for the first time in five months. Economists had expected the index to rise to 107.1.

The kiwi declined to 1.1294 against the aussie, its weakest since November 2013. Next key support for the kiwi is seen around the 1.14 level.

The construction sector in Australia expanded at an accelerated pace in August, the latest survey from the Australia Industry Group revealed today with a performance of construction index score of 55.0.

That touches a nine-month high for the index, which came in at 52.6 in July. A reading above 50 signals expansion in a sector, while a score below means contraction.

The kiwi held steady against the euro, after edging down to 1.5632 in early deals. At yesterday's close, the pair was worth 1.5578.

Euro area economy stalled in the second quarter as estimated earlier as investments and inventories declined and state spending eased, latest figures from Eurostat showed.

Gross domestic product remained flat from the first quarter, when the economy expanded 0.2%. That was in line with the initial estimates.

The kiwi declined to a 6-1/2-month low of 0.8269 against the US dollar in Asian morning deals, but has bounced off in later trades. The pair was quoted at 0.8302 when it closed deals yesterday.



For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: Alliance News


Story Tools






HispanicBusiness.com Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters