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NZ dollar falls below 67 US cents as markets await US jobs d


By Rebecca Howard

July 5 (BusinessDesk) - The New Zealand dollar fell back below 67 US cents in holiday-affected trading ahead of US jobs data later in the global trading day.

The kiwi was trading at 66.84 US cents at 7:55am in Wellington versus 67.05 US cents at 5pm yesterday. The trade-weighted index was at 72.96 from 73.16

US markets were closed for the July 4 Independence Day holiday and markets were "subdued," ANZ Bank FX/rates strategist Sandeep Parekh said.

"Participants remain firmly focused on the upcoming US non-farm payrolls data," he said.

"With no data on offer domestically, the kiwi will take its cues from offshore events."

Parekh said many investors expect the jobs data will weigh heavily on the Federal Reserve's interest rate decision later this month.

"If the numbers confirm a loss of momentum in the labour market or are extremely weak, the focus will return immediately to the potential for a 50bps cut."

Markets are expecting the US economy to have delivered 160,000 new jobs in June, following a 75,000 gain in May. The unemployment rate is expected to remain steady at 3.6 percent, which is a 50-year low. According to the CME Group's FedWatch Tool, there is around a 70 percent chance that the Fed cuts rates by 25 basis points and a 29.7 percent chance of a 50-point cut.

The kiwi was trading at 95.13 Australian cents from 95.27 and at 53.14 British pence from 53.27. It was at 59.23 euro cents from 59.41, at 72.06 yen from 72.28, and at 4.5927 Chinese yuan from 4.6075

(BusinessDesk)

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