Dollar edges up as market latches on to weaker US employment data

Free audio stream, including stories that are padlocked on our site. Listen on any device, anywhere. Updated twice daily. The audio stream takes several seconds to start on Android devices.

Launch Radio player

The New Zealand dollar edged up as investors latched on to weaker than expected US employment data, after figures earlier this week showed soft economic growth in the first three months of the year.

The kiwi increased to 86.36 US cents at 8am in Wellington from 86.13 cents yesterday. The trade-weighted index advanced to 80.27 from 80.01.

Markets largely ignored positive consumer spending and manufacturing news in the world's biggest economy, focusing instead on an unexpected rise in initial jobless claims ahead of April's non-farm payrolls report on Friday in Washington. Tepid first-quarter growth in the US sparked concerns about the strength of its economy, though forward-looking indicators still show signs of life.

"There's a small bias towards responding to negative news," said Imre Speizer, market strategist at Westpac Banking Corp. "That will overall keep the US dollar weak and push up the kiwi/US."

Westpac's Speizer said the kiwi may trade between 86 US cents and 86.40 cents today ahead of the US payrolls report.

A number of European markets were closed for the May Day holiday yesterday, keeping trading volumes light.

Traders will keep an eye on the ANZ commodity price index today for a read on New Zealand's export market, and after prices have been drifting down in recent months.

The kiwi rose to 88.34 yen at 8am in Wellington from 88.06 yen yesterday, and climbed to 93.09 Australian cents from 92.67 cents. It increased to 62.29 euro cents from 62.07 cents, and edged up to 51.11 British pence from 51.02 pence.

(BusinessDesk)


This article is tagged with the following keywords. Find out more about MyNBR Tags

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7680 0.0000 0.00%
AUD 0.9866 0.0000 0.00%
EUR 0.7101 0.0000 0.00%
GBP 0.5130 0.0000 0.00%
HKD 5.9663 0.0000 0.00%
JPY 91.3140 0.0000 0.00%

Commods

Commodity Price Change Time
Gold Index 1202.7 5.690 2015-04-17T00:
Oil Brent 63.5 1.740 2015-04-17T00:
Oil Nymex 55.7 -1.000 2015-04-17T00:
Silver Index 16.2 -0.050 2015-04-17T00:

Indices

Symbol Open High Last %
NZX 50 5881.8 5884.7 5881.8 -0.34%
NASDAQ 4966.1 4974.1 5007.8 -1.52%
DAX 11942.4 12019.8 11998.9 -2.58%
DJI 18102.6 18102.6 18105.8 -1.54%
FTSE 7060.4 7093.5 7060.4 -0.93%
HKSE 27808.2 27969.4 27739.7 -0.31%
NI225 19810.4 19815.2 19885.8 -1.17%