New Zealand Dollar Rangebound Ahead of Greece Referendum

 
   By Rebecca Howard 
 

        WELLINGTON, New Zealand--The New Zealand dollar opened higher after the U.S. jobs data, but is likely to remain rangebound ahead of the Greek referendum.
        The New Zealand dollar got a lift after a mixed jobs report for June reflected continued underlying softness in the U.S. economy. U.S. employers added a seasonally adjusted 223,000 jobs in June and the unemployment rate fell to 5.3%, the lowest level since April 2008. But those gains were offset by flat wages, historically-low labor-force participation and downward revisions to the past two months' job gains.
        The New Zealand dollar was at US$0.6721 in late Wellington trading, compared with US$0.6698 late Thursday. It was at 0.8854 Australian dollars versus A$0.8758 previously.
        The focus is now firmly on Greece ahead of a referendum on Sunday to resolve the country's bailout terms, which could determine whether it stays in the eurozone.
        But the panorama might be murky after the referendum, according to ANZ Bank. If there is a "yes" vote, "there might not be a Greek government to negotiate with--both Tsipras and Varoufakis have said they will resign--thus a new government will have to be formed," it said.
        If there is a "no" vote, the Europeans have said they will find it very hard to continue negotiations, and the European Central Bank will be hard pressed to continue with the emergency liquidity assistance if there are no programs to support solvency, it said.
        "The Greek assertion that the banks will open Tuesday no matter what the vote looks a bit tenuous. There is no guarantee that next week will bring an answer to this," it said.
        Write to Rebecca Howard at rebecca.howard@wsj.com; @FarroHoward
        (END) Dow Jones Newswires

        July 03, 2015 01:19 ET (05:19 GMT)

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