US data boosts kiwi dollar

Last updated 08:25 10/09/2010

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The New Zealand dollar grew stronger overnight as optimism returned with better-than-expected US data.

At 8am, the NZ dollar traded at US72.57c at 8am from US72.19c at 5pm yesterday.

ANZ's morning brief said "US equity markets rebounded overnight on lower than expected initial jobless claims and smaller than expected trade balance".

Although the level of claims was still reasonably high, it was the third straight week they have either fallen or held steady, engendering confidence among some commentators that the jobs market was improving, ANZ said.

The NZ dollar also bounced back against the Australian dollar, which jumped yesterday after data showing a surge in employment.

Data showed Australia added 39,900 jobs in August, better than the expected 29,000 rise, and unemployment dipped 5.1 percent.

The figures were seen as a boon to domestic demand and consumption, leading investors to speculate the Reserve Bank of Australia may resume raising rates from 4.5 percent as soon as next month.

The NZ dollar rose to A78.50c at 8am from A78.35c at 5pm yesterday.

It was at 60.87 yen at 8am, compared to 60.44 5pm yesterday and at 0.5712 euro from 0.5686 yesterday.

The trade weighted index was at 67.39 at 8am from 67.10 yesterday.

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- NZPA