Kiwi quiet awating busy global week

RICHARD MEADOWS
Last updated 08:34 05/11/2012

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Currencies

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The New Zealand dollar is lower against the US dollar after better than expected United States jobs data pushed the greenback into a broad rally late last week.

The kiwi recently traded at US82.38c, down from US82.62c at 5pm on Friday, while on the Trade Weighted Index of major trading partners’ currencies it held steady at 73.80.

US employers added 171,000 jobs in October, exceeding Wall Street's expectations, while the unemployment rate crept up to the forecast rate of 7.9 per cent.

“The kiwi has borne the brunt of that, heading lower throughout the Friday afternoon trading session,” said BNZ currency strategist Mike Jones.

Jones said Australian retail data due out today could spur a little bit of volatility but the market was mostly braced for the Reserve Bank of Australia’s interest rate announcement tomorrow. Economists across the Tasman expect their central bank to cut the official interest rate by 25 basis points to three per cent.

Locally, the market already had a good view of the Chinese manufacturing data also due to be released today and Jones expected the kiwi to mostly consolidate in trading.

“I think Monday will mainly see the currency track sideways really, as investors anticipate a big week ahead.”

On the crosses, the kiwi recently traded at 79.64 Australian cents, up from A79.43c on Friday. It rose to 64.25 euro cents from 63.89 euro cents earlier. It rose to 51.43 pence, from 51.26p last week. It was at 66.15 Japanese yen, down from 66.29 yen earlier.

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- BusinessDay.co.nz

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