The New Zealand dollar burst out of recent ranges today after the US sharemarket logged its best one-day gain in more than a month and the strength of the Australian labour market again beat economists' expectations.The kiwi rose to its highest level in m
The New Zealand dollar burst out of recent ranges today after the US sharemarket logged its best one-day gain in more than a month and the strength of the Australian labour market again beat economists' expectations.
The kiwi rose to its highest level in more than a week around 71USc after a bullish forecast from financial company State Street fuelled optimism about the coming US earnings season.
European shares reversed early losses and Asian markets followed through with strong performances.
By 5pm the NZ dollar was at 70.45USc, up from 69.18USc at 5pm yesterday.
The Australian dollar soared to 87.16USc at 5pm from 84.74USc at the same time yesterday after Australia's jobless rate fell to its lowest point in more than a year as total employment surged in June.
Australia's unemployment rate was a seasonally adjusted 5.1% in June, compared with a market expectation of 5.2% and total employment rose by 45,900, easily beating the market expectation of a 15,000 rise.
Economists said the better than expected news could push the Reserve Bank of Australia to lift the cash rate in August.
"It's a very strong result," RBC Capital Markets economist Su-Lin Ong said.
The NZ dollar fell to 80.75Ac from 81.60Ac yesterday.
A dealer said the NZ dollar had been range-bound for most of this week but that changed today.
The last time Australia reported strong data the positive impact lasted for several days and a good night was expected on the US equity market.
The euro rose to a two-month high as investors became more comfortable with risk.
The NZ dollar performed well against the strong euro to be €0.5565 at 5pm from €0.5493 at the same time yesterday.
It surged against the yen to ¥62.20 at 5pm from ¥60.45 at the same time yesterday.
The trade weighted index rose to 66.91 at 5pm from 66.09 yesterday.
