💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Australia dollar bounces off lows

Published 08/02/2016, 12:48 pm
Updated 08/02/2016, 12:50 pm
© Reuters.  Australia dollar bounces off lows
NZD/USD
-

By Cecile Lefort

SYDNEY, Feb 8 (Reuters) - The Australian and New Zealand dollars were nursing hefty losses in thin trading on Monday after an upbeat U.S. non-farm payrolls report gave a jolt of energy to their U.S. peer.

The Australian dollar AUD=D4 popped back above 71 U.S. cents, from $0.7063 in early trade, but was still licking its wounds from Friday's nearly 2 percent drop.

Support was seen at $0.7060. Resistance was found at a one-month peak of $0.7242 touched last week.

It was also sharply lower against the safe-haven yen at 83.61 AUDJPY=R , from a top of 86.20 set last week.

The Antipodean currencies were among the hardest hit on Friday after the U.S. jobless rate dipped to an 8-year low, blowing some life back into Federal Reserve hike expectations.

Worries about slowing global growth had convinced many investors that the next hike by the Federal Reserve would be a long time coming.

At home, job advertisements in newspapers and on the Internet resumed their growth in January, suggesting solid demand for labour that should help keep Australia's unemployment rate steady. futures 0#YIB: imply a 62 chance of an interest rate cut by mid-year to a record low of 1.75 percent.

Most centres in the region are shut on Monday and Tuesday for the Lunar New Year holidays. China will be closed all week.

A New Zealand annual celebration added to the kiwi's lull. The New Zealand dollar stood at $0.6642 NZD=D4 , from $0.6622 early. It skidded 1.5 percent on Friday but still managed to be up 2.1 percent for the week in this year's largest gain.

Australian government bond futures fell, with the three-year bond contract YTTc1 off 3 ticks at 98.140. The 10-year contract YTCc1 eased 5 ticks to 97.4050, while the 20-year contract YXXc1 dropped 4.5 ticks to 96.8700. (Editing by Kim Coghill)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.