Kiwi up ahead of US jobs data

JAZIAL CROSSLEY
Last updated 17:53 05/10/2012

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The New Zealand dollar rose against the greenback today, ahead of the United States unemployment and non-farm payrolls data due out overnight that will influence markets heavily.

The kiwi recently traded at US82.38, up from US82.18c in the morning. On the Trade Weighted Index against major trading partners' currencies it was at 73.20, up from 73.18 earlier.

HiFX senior currency strategist Dan Bell said the kiwi-US cross had a reasonably positive day.

"The kiwi was up from yesterday's lows, sitting just under resistance of US82.40c. There was not a lot of rhyme or reason to why it was so much higher. There have been a number of days of risk-off leading the kiwi to trade under US82.00c yesterday. Overnight we saw a recovery in sentiment as the euro-US cross pushed back," Bell said.

European Central Bank leader Mario Draghi overnight it would start buying bonds to ease debt burdens, which markets are awaiting more details of.

"There was a focus on US employment figures tonight, released at 1.30am New Zealand time. The market is expecting the US to have created 13,000 new jobs and unemployment ticked up 2 per cent. If it reports a strong number it could give US dollar a little bit of support."

On the crosses, the kiwi was at 80.25 Australian cents, up from A80.15c. It was at 63.30 euro cents up from 63.12 euro cents. It was at 50.87 pence, up from 50.75 pence. It was at 64.51 Japanese yen, unchanged from the morning.

Bell expected the kiwi to trade between US81.00c and US83.00c with a bias towards the downside.

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