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NZ Dollar Bounces Briefly After US Jobs Data

Fuseworks Media
Fuseworks Media

Wellington, March 9 NZPA - The New Zealand dollar briefly spiked to a week-high near US50.90c after the release of United States job figures, but then quickly fell away.

By 8am today the kiwi was buying US50.31c, just a little up on the US50.16c at 5pm on Friday, having peaked early on Saturday.

BNZ Capital currency strategist Danica Hampton described the 651,000 jobs fall in the US and rise in unemployment rate to 8.1 percent as "awful".

The data triggered a brief bout of US dollar weakness with the kiwi pushing up towards US51c, she said.

But anticipation the Reserve Bank will cut interest rates on Thursday and some supply of the kiwi against the Australian dollar meant bounces in the NZ dollar against the greenback were limited.

By today's local open the kiwi was down to 0.3975 euros from 0.3990 at 5pm on Friday, while the NZ currency was up against the Australian dollar, to A78.51c from A78.15c.

The kiwi was marginally up against the yen to 49.45, while the trade weighted index was up to 51.94 at 8am from 51.85 at 5pm on Friday.

The US dollar slid versus the euro, as investors locked in gains and pared back safe-haven trades on the greenback, suggesting that, in the currency market at least, the employment report was not as dismal as the market's worst expectations.

Richard Franulovich, senior currency strategist at Westpac Banking Corp in New York, said since the jobs number was largely in line with market forecasts, there was a semblance of risk appetite in the market "and so the (US) dollar has come off against the euro".

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