News Column

NZ Dollar Strengthens Against Majors

May 5, 2014

CANBERA (Alliance News) - The New Zealand dollar advanced against other major currencies in Asian deals on Thursday, as traders await the release of nation's employment report due tomorrow.

The jobless rate is seen falling to 5.8% in the first quarter from last quarter's 6%. The jobs are expected to grow to 3.4% on year from 3.0% in the previous quarter.

Investors also cheered upbeat US data on ISM non-manufacturing showing an increase to 55.2 in April. The expansion is at the fastest pace in eight months.

The kiwi appreciated to 1.5937 against the euro for the first time since April 15. This is up by 0.3% from yesterday's close of 1.5977. The next possible upside target for the kiwi lies around the 1.58 zone.

The kiwi added 0.4% to hit 0.8705 against the greenback, its strongest since April 11. At yesterday's close, the pair was quoted at 0.8674. If the kiwi rises further, it is likely to seek upside target around the 0.876 mark.

The kiwi that ended yesterday's deals at 88.58 against the yen advanced to near a 4-week high of 88.90. Further gains may lead the kiwi to a resistance at the 89.5 region.

The kiwi appreciated to 1.0670 against the aussie, a level not seen since April 1. The kiwi is likely to find resistance around the 1.05 area. The pair was worth 1.0676 at yesterday's close.

Data from the Australian Bureau of Statistics said today that Australia's seasonally adjusted merchandise trade surplus was AUD731 million in March, down from forecasts for a surplus of AUD1.2 billion.

Looking ahead, the Reserve Bank of Australia's interest rate decision is due shortly. The bank is forecast to hold rates at 2.5%.

The PMIs from major European economies, along with Eurozone retail sales for March are set for release in the European session.

The US and Canadian trade data for March, as well as Canada Ivey PMI for April are due in the New York session.

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Source: Alliance News

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