Dollar edges lower as markets await key US employment report
Kiwi slipped to 71.14USc at 8am in Wellington, from 71.30USc at 5pm yesterday.
The New Zealand dollar edged lower overnight as traders await the key US non-farm payrolls employment report in anticipation a strong number could cement a September rate hike by the Federal Reserve.
The kiwi slipped to 71.14USc at 8am in Wellington, from 71.30USc at 5pm yesterday. The trade-weighted index was little changed at 74.47 from 74.48 yesterday.
Today, the focus will be on the monthly US non-farm payrolls report, which is closely watched by the Federal Reserve as it weighs the likely timing of interest rate hikes this year. Data released yesterday showed US initial jobless claims fell by 8000 to 276,000 in the final week of May, boosting optimism about the upcoming payrolls report for May.
"Most major currencies are relatively close to the levels prevailing yesterday morning," Raiko Shareef, a currency strategist at Bank of New Zealand, said in a note. "Tonight, all eyes turn to the US employment reports. While the consensus picks a 225,000 gain, we suspect the market is readying itself for a better result than that. Much scrutiny will also fall on the wage growth numbers, which remain relatively subdued."
The Australian dollar fell yesterday after retail sales and trade data missed expectations. The New Zealand dollar advanced to 92.57Ac from 92.20Ac yesterday.
The kiwi was little changed at 63.29 euro cents from 63.28 cents yesterday. Greece delayed a key €300 million debt payment to the International Monetary Fund due today as Prime Minister Alexis Tsipras demanded changes to terms. The IMF granted his request to bundle together four payments due this month, which means the €1.5 billion that Greece owes to the institution will now come due on June 30.
The local currency slipped to 46.30 British pence from 46.52 pence yesterday after the Bank of England kept policy unchanged as expected. The central bank's 12-month inflation expectations are due out tonight.
The New Zealand dollar weakened to 88.46 yen from 88.75 yen yesterday.
(BusinessDesk)
Tina Morrison
Fri, 05 Jun 2015
Fri, 05 Jun 2015
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Dollar edges lower as markets await key US employment report
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