WELLINGTON, New Zealand--The New Zealand dollar was trading higher late Monday after getting a solid lift overnight Friday in the wake of the U.S. payrolls data.
By Rebecca Howard
The U.S. dollar lost ground Friday despite the Labor Department on Friday reporting that the economy added 288,000 jobs in April, better than the 215,000 economists had expected.
"Price action post April US Non-farm Payrolls data signals that the labour market alone is not sufficient to alter Fed and USD perception; we need broader economic signals," said ANZ Bank Chief Economist Cameron Bagrie. With New Zealand data strength becoming more broad-based "top side resistance" could be broken, said Mr. Bagrie.
In late Wellington trading, the New Zealand dollar was at US$0.8657 compared with US$0.8622 late Friday in New Zealand, and at A$0.9346 from A$0.9296.
Westpac Bank Senior Strategist Imre Speizer said the New Zealand dollar continues to look positive in the bigger picture but may drift down to around US$0.8640 support later in the global trading day.
He noted the pair lost some ground after HSBC's final China manufacturing PMI was revised down to 48.1 from a flash estimate of 48.3 but largely shrugged off the data.
Mr. Speizer said the major offshore event this week will be Federal Reserve Chairwoman Janet Yellen's testimony to the U.S. Joint Economic Committee.
Domestically, Kiwi and Aussie jobs data will be watched, along with the Reserve Bank of Australia rate decision, although no change in the RBA's cash rate target -- currently at a record low of 2.5% -- is expected by markets.
Write to Rebecca Howard at rebecca.howard@wsj.com
(END) Dow Jones Newswires
May 05, 2014 01:39 ET (05:39 GMT)
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