THE Kiwi opened the week on a strong note after data showed a decline in global dairy prices. Mike Jones, currency strategist at Bank of New Zealand, noted that the result was within expectations and did not have an adverse impact on New Zealand Dollar exchange rates.
The Kiwi then rose against the Greenback after New Zealand employment data surprised analysts. The figures showed that 27,000 more people moved back into workplace in the past three months with the number set to grow in the New Year. This strength was short lived as disappointing Aussie employment data weakened the Aussie, and brought the Kiwi down with it.
Friday saw the release of US non-farm payroll data. Non-farm payroll data represents roughly 80% of the contribution to US national GDP (Gross Domestic Product), it does not include farm workers, private household employees, or non-profit organization employees. The data showed that the US economy had added 204,000 jobs in October and that payrolls had increased in the retail, hospitality, manufacturing and health sectors.
The New Zealand dollar opened higher against the Greenback on Monday, but gains were brief as speculation grew that the Federal Reserve could soon begin tapering its asset purchases. This showed support to its US counterpart that saw the US Dollar end Monday in a strong position.
Looking ahead, New Zealand Retails sales and business PMI will guide most of the week’s movement. Euro GDP, UK retail sales and US trade balance figures are all due to be released in the coming week and will determine most of the major currency pair’s movements.
GBP/NZD : 1.939
EUR/NZD : 1.626
USD/NZD : 1.215
AUD/NZD : 1.133
Exchange rates as of GMT 07:00 12 November 2013
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