The New Zealand dollar popped above 86 US cents at the weekend after a key US jobs report failed to meet the expectations of some investors, spurring demand for higher-yielding currencies.
The kiwi touched a high of 86.03 US cents and traded at 85.81 cents at 8am in Wellington from 85.97 cents at the New York close and 85.59 cents at 5pm in Wellington on Friday. The trade-weighted index advanced to 80.22 from 80.14 on Friday.
The US dollar index, which measures the greenback against a basket of currencies, weakened after US non-farm payrolls missed expectations, with 192,000 jobs added in March, lower than the 200,000 predicted by economists and the 210,000 expected by some investors. The US unemployment rate held at 6.7 percent against expectations of a fall to 6.6 percent.
"The longer it takes for US data to recover and the longer US bond yields remain depressed, the more incentive there is for international investors to park cash here in New Zealand, with AAA rated five-year Kauri bonds trading at yields close to 5 percent, which is pretty good considering US five-year Treasury bonds trade at 1.7 percent," ANZ Bank head of markets research in New Zealand David Croy and senior foreign exchange strategist Sam Tuck said in a note.
"The bottom line: more disappointing data in the US is just piling more pressure on the New Zealand dollar," Croy and Tuck said.
ANZ expects the New Zealand dollar to trade between 85.50 US cents and 86.30 cents today.
The New Zealand dollar slipped to 92.35 Australian cents from 92.63 cents on Friday. It advanced to 62.67 euro cents from 62.43 cents on Friday, rose to 51.77 British pence from 51.60 cents and dropped to 88.59 yen from 88.93 yen.
Today, Chinese banks are closed for Tomb Sweeping Day.
This article is tagged with the following keywords. Find out more about MyNBR Tags
Most listened to
- Trilogy International CEO Angela Buglass on tripling her profit
- Eroad CEO Steven Newman talks about his company's revenue increase
- What do the latest terrorism attacks in Mali and Israel mean? Nathan Smith discusses the latest foreign affairs news
- NZ Windfarms departing director Michael Stiassny speaks out after board exit
- James Mayo talks about SOS Hydration's growth plans after Snowball offer
- Michael Wood on whether he would run in Mt Roskill
- SAFE's Abi Izzard quizzed over protest of a caged hen operation at Pukekohe
- Nevil Gibson talks about Editor's Insight on the planned $US150 million merger between Pfizer and Allergan
- Taupo Beef’s Mike Barton on how to extract sustainable profit from farming
- Will the government lose on RMA reform? Rob Hosking outlines the PM's speech
- How could bookmakers recoup $16 million? Racing Board chief executive John Allen explains
- Nevil Gibson breaks down the latest aviation news