NZ dollar weaker after greenback gains on US jobs data

Monday 8th April 2019

The New Zealand dollar is weaker after US jobs data was better than expected, easing fears about a possible economic slowdown in the US.

The Kiwi was trading at 67.26 at 8am in Wellington versus 67.31 late Friday in New York. It was at 67.54 US cents at 5pm Friday in Wellington. The trade weighted index was at 73.13 points from 73.09 points in New York.

Nonfarm payrolls increased a seasonally adjusted 196,000 in March, the Labor Department said Friday, a rebound from the 33,000 jobs added in February. The unemployment rate held steady at 3.8 percent last month.

"Kiwi put up little fight against the greenback as US non-farm payrolls came in better than expected. With a dovish RBNZ providing the backdrop, and few local releases to provide support, the kiwi remains at the whim of offshore moves," said ANZ FX/rates strategist Sandeep Parekh. He said it has support at 67 US cents and resistance at 68 US cents.

The market remains focused on US-China trade headlines as well as Brexit.

The kiwi was trading at 51.57 British pence versus 51.66 late Friday as "sterling whipsaws as Brexit nears," said Parekh. "Efforts made by PM May to extend Brexit continued to provide support whilst markets brace for more volatility as negotiations continue this week."

The kiwi was at 94.63 Australian cents versus 94.71 and at 59.96 euro cents from 60.03, at 75.14 Japanese yen from 75.23 and at 4.5187 Chinese yuan from 4.5240.

(BusinessDesk)

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