Sharechat Logo

NZ dollar falls before ECB, BoE meetings, US jobs data

Thursday 4th October 2012

Text too small?

The New Zealand dollar fell ahead of meetings by the European Central Bank and the Bank of England tonight and US payrolls data tomorrow that will provide more clues to the central bank response in Europe and the strength of the world's biggest economy.

The New Zealand dollar fell to 81.82 US cents from 82.22 cents at 5pm in Wellington yesterday. The trade-weighted index dipped to 73.17 from 73.43.

The ECB meets for the first time since confirming its bond buying programme last month and traders will be looking for signs it is prepared to provide more stimulus to the Eurozone economy. The US jobless rate is forecast to have risen to 8.2 percent while payrolls increased by 115,000 in September, less than the 139,000 average over the first eight months of the year. Ahead of the US jobs data, the Federal Open Market Committee minutes are due for release tomorrow.

"For the most part, these moves appear to reflect profit taking and speculative position adjustments as we head into a busy period for event risk," said Mike Jones, a strategist at Bank of New Zealand.

With the kiwi having broken through a key support level of 81.85 US cents, "we could see a deeper correction back towards 80" cents, he said.

Events overnight should have been supportive for the kiwi and for growth assets. Stocks on Wall Street gained after the ADP National Employment Report showed US private payrolls rose by 162,000 in September, beating estimates. The Institute for Supply Management's non-manufacturing index advanced to 55.1 in September, from 53.7 in August, also beating forecasts.

The kiwi dollar fell to 63.39 euro cents from 63.73 cents and fell to 50.90 British pence from 50.97 pence.

The local currency fell to 80.18 Australian cents from 80.41 cents and traded at 64.22 yen from 64.28 yen.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar gains on G20 preference for growth
NZ dollar dips as Wellington CBD checked for quake damage
NZ dollar gains, bolstered by RBA minutes, strong dairy prices
NZ dollar falls after central bank says it may scale up currency intervention
NZ dollar gains before CPI, helped by dairy gains, rally on Wall Street
NZ dollar trades little changed as US budget talks bear down on deadline
NZ dollar falls with equities on view US to sail over fiscal cliff
NZ dollar weakens as fiscal cliff looms, long bets unwind
NZ dollar sinks to three-week low as equities fall, fiscal talks in focus
NZ dollar slips as fiscal cliff talks grind slower in Washington

IRG See IRG research reports