NZD little changed vs greenback as US labour data awaited

Thursday 01 September 2016 08:42 AM

NZ dollar little changed vs greenback as US labour data awaited, gains vs Aussie

By Jonathan Underhill

Sept. 1 (BusinessDesk) - The New Zealand dollar was little changed against the greenback and gained against the Australian dollar as traders await a key US labour market report for clues to the next US interest rate hike.

The kiwi traded at 72.49 US cents as at 8am in Wellington from 72.51 cents late yesterday. The trade-weighted index gained to 77.40 from 77.36.

US companies added 177,00 jobs in August, according to the ADP private sector payroll report overnight, keeping in place forecasts for the official non-farm payrolls data on Friday of about 180,000 jobs. With Federal Reserve officials talking up the prospects of a rate hike as soon as September, depending on upcoming data, the labour market figures have taken on even more significance than usual.

"The market appears to be in a holding pattern ahead of Friday night’s US employment report," said Jason Wong, a currency strategist at Bank of New Zealand. "It will take a stronger than expected (payrolls) figure to change current expectations of about a one in three chance of the Fed tightening again as soon as September."

The New Zealand dollar gained to 96.43 Australian cents, and earlier reached 96.60 cents, from 96.29 cents late yesterday.

Wong said 96 Australian cents has been "an area of resistance" for the kiwi over the past couple of months. "While we see parity as a matter of when, not if, we’re not convinced now is the time for a run up to that level."

The kiwi rose to 74.92 yen from 74.65 yen yesterday and was little changed at 4.8386 yuan from 4.8388 yuan. It was little changed at 64.96 euro cents and slipped to 55.18 British pence from 55.29 pence.

(BusinessDesk)

© Scoop Media