NZ dollar stumbles ahead of US data

The New Zealand dollar fell from a two-week high ahead of US employment figures on Friday, which will indicate the pace of recovery in the world’s biggest economy.

 
 

THE New Zealand dollar fell from a two-week high ahead of US employment figures on Friday, which will indicate the pace of recovery in the world’s biggest economy.

The kiwi fell to 83.54 US cents at 5pm from as high as 84.14 cents overnight, and was down from 83.77 cents at 8am and 83.81 cents on Wednesday. The trade-weighted index declined to 77.62 from 77.83.

Traders are preparing for the release of US non-farm payrolls figures, which are expected to show the world’s biggest economy added 120,000 jobs last month. The Federal Reserve wants to see a lower unemployment rate before it starts winding back its $US85 billion monthly asset purchase programme.

“The market’s getting back into the ‘will they taper won’t they taper’ state,” said Imre Speizer, market strategist at Westpac Banking Corp. “It’s going to be hard for the kiwi to break through the 84-ish number.”

Mr Speizer said he expects the local currency will trade between 83.50 cents and 84 cents leading up to the release, with New Zealand’s improving economy underpinning the kiwi. Government figures on Wednesday showed stronger than expected jobs growth in the third quarter.

“On the day and tomorrow, the kiwi looks alright,” he said.

The kiwi traded at 88.16 Australian cents at 5pm from 88.12 cents on Wednesday after news of weaker employment than expected across the Tasman.

Investors will be looking to see the outcome of monetary policy reviews in England and Europe, after the European Central Bank cut its economic growth forecasts earlier this week.

The kiwi fell to 61.78 euro cents at 5pm from 62.03 cents on Wednesday, and slipped to 51.95 British pence from 52.09 pence.

The local currency declined to 82.35 yen from 82.71 yen.

 
 

 
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