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NZ dollar gains against Aussie ahead of Australian jobs data

Thursday 13th June 2019

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The New Zealand dollar gained against the Aussie ahead of jobs data due across the Tasman today. 

The Kiwi was trading at 94.83 Australian cents at 8:00 am from 94.50 Australian cents at 5pm. It was at  65.70 US cents from 65.69 US cents.

The Aussie slipped in overnight trading and ANZ FX/rates strategist Sandeep Parekh said today's employment release will be a key driver.

"A poor print will see the market increase the odds of another cut by the RBA in the near term and give more confidence to those calling for a third cut." 

ANZ expects the federal election likely boosted employment in the month, contributing to a slightly lower unemployment rate of 5.1 percent. Economists polled by Bloomberg are expecting an unemployment rate of 5.1 percent and a participation rate of 65.8. 

The kiwi was steady against the US dollar as markets took weaker US inflation data in its stride ahead of next week's rate decision from the Federal Reserve. US May CPI eased to 1.8 percent year-on-year versus an expected 1.9 percent. The core inflation measure was 2.0 percent versus an expected 2.1 percent. 

"All up, markets remained broadly within established ranges of the last few days, suggesting appetite to establish new risk positions ahead of the FOMC next week may be diminishing," said Parekh. 

Meanwhile, US-China trade tensions remain a key focus with US President Donald Trump saying he has a "feeling" a deal can be reached, according to Reuters. Speaking to reporters at the White House, Trump also reiterated his intention to meet with Chinese President Xi Jinping but gave no further details.

The trade-weighted index was at 72.21 points from 72.09. The kiwi was trading at  51.77 British pence from 51.64, at 58.18 euro cents from 57.95, at 71.28 yen from 71.23, and at 4.5446 Chinese yuan from 4.5413.

(BusinessDesk)

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