Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

NZ dlr falls after jobless rate climbs, A$ weaker

Published 01/02/2017, 01:23 pm
Updated 01/02/2017, 01:30 pm
© Reuters.  NZ dlr falls after jobless rate climbs, A$ weaker
AUD/USD
-
NZD/USD
-
EUR/AUD
-

By Swati Pandey

SYDNEY, Feb 1 (Reuters) - The New Zealand dollar eased slightly on Wednesday as the country's jobless rate jumped and wage growth remained sluggish, while its Australian counterpart took a breather after three straight sessions of gains.

New Zealand unemployment rose to 5.2 percent in the December quarter, from an eight-year low of 4.8 percent, but only because participation grew to a record. New Zealand dollar NZD=D4 fell as low as $0.7280 after the data, drifting away from a 10-week high of $0.7345 as investors pared back the chance of a rate hike. It was trading down 0.5 percent at 0209 GMT.

The data "won't worry the Reserve Bank of New Zealand too much, but the chances of it raising interest rates this year are very slim since wage growth will remain stubbornly weak," said economist Kate Hickie at Capital Economics.

Across the Tasman Sea, the Australian dollar AUD=D4 eased 0.3 percent to $0.7560. It faces stiff chart resistance at 76 U.S. cents, a level it has breached twice in the past month but failed to stay above that level for an entire session.

The currency has remained in a tight trading range between 75-76 U.S. cents over the past 12 sessions. Technical analysts say a break above $0.7610/20 would open the way for a jump to $0.7720/40.

Both the Kiwi and the Aussie have had a strong run against the greenback so far this year, surging about 5.5 percent each in January.

During that time, the greenback has sagged, with investors becoming increasingly risk averse due to U.S. President Donald Trump's policies.

The latest blow to the U.S. dollar came after Trump and his top economics adviser took aim at the currency decisions of key U.S. trade partners, further raising concern that Washington was poised to actively weaken the greenback. the Antipodean currencies eased against the yen, the euro and the pound. The euro rose 0.2 percent against the Aussie EURAUD=R and 0.4 percent against the Kiwi EURNZD= . The Aussie and the Kiwi slipped 0.2 percent each on the yen AUDJPY= NZDJPY= .

New Zealand government bonds 0#NZTSY= rose, sending yields about 2.5 basis points lower across the curve.

Australian government bond futures eased, with the three-year bond contract YTTc1 off 1 tick at 98.06. The 10-year contract YTCc1 slipped 1.5 ticks to 97.24. (Editing by Randy Fabi)

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.