NZ Dollar Climbs Ahead Of U.S. Jobs Data
October 04 2019 - 2:00AM
RTTF2
The New Zealand dollar strengthened against its major
counterparts in the early European deals on Friday, as European
shares rose ahead of a key jobs data that could point to further
rate cuts in the U.S.
U.S. employment is expected to increase by 140,000 jobs in
September after an increase of 130,000 jobs in August. The
unemployment rate is seen holding at 3.7 percent.
A weak data could trigger hopes for further reduction in
interest rates when the Fed meets later this month.
CME Group's FedWatch tool now points to a 90 percent chance for
a quarter point rate cut in October.
Recent data showed that U.S. manufacturing PMI fell to a 10-year
low, while the services PMI recorded its lowest reading since
2019.
The currency has been trading higher against its major
counterparts in the previous session.
The kiwi appreciated to a weekly high of 1.7336 against the euro
from Thursday's closing value of 1.7398. The next possible
resistance for the kiwi is seen around the 1.70 level.
The kiwi rallied to a 9-day high of 0.6332 against the
greenback, up from yesterday's closing quote of 0.6299. If the kiwi
rises further, it may find resistance around the 0.66 level.
The NZ currency hit a 3-day high of 67.60 against the yen from
yesterday's trading close of 67.34. The kiwi is seen finding
resistance around the 69.00 mark.
The kiwi climbed to 1.0675 against the aussie, its strongest
since September 11. Next immediate resistance for the kiwi is seen
around the 1.05 level.
Data from the Australian Bureau of Statistics showed that
Australia's retail sales increased in August.
Retail sales advanced 0.4 percent on month, following a flat
growth a month ago. This was the fastest growth in four months.
However, the pace of growth was slightly slower than the expected
0.5 percent.
Looking ahead, U.S. and Canadian trade data for August, U.S.
jobs data and Ivey PMI for September will be released in the New
York session.
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