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Kiwi little changed against US dollar

NZ Newswire logoNZ Newswire 6/02/2017 Jonathan Underhill

The New Zealand dollar was little changed above US73 cents having gained following weak US wage inflation figures and rose against the euro after French National Front Leader Marine Le Pen vowed to her country out of the euro-zone if elected.

The kiwi dollar traded at US73.12c as at 8am on Tuesday in Wellington from US73.20c in Asian markets on Monday and from US72.70c before the US labour market figures on Friday.

The kiwi rose to 68.02 euro cents from 67.90c late on Monday.

The US added a higher-than-expected 227,000 jobs last month but average hourly earnings barely budged, rising 0.1 per cent against expectations for a 0.3 per cent gain, which some traders took as a sign the Federal Reserve won't need to rush to hike interest rates again.

Meanwhile, Ms Le Pen launched her French presidential campaign with a speech filled with anti-globalisation rhetoric and a call for France to leave the economic bloc and resume using its own currency, and the market is assessing the prospects of early Italian elections.

The US payrolls data "saw a combination of strong jobs growth and weak wage inflation, which slightly reduced the chance of the Fed hiking next month," said BNZ currency strategist Jason Wong.

European political risks have regained the spotlight ahead of a series of national elections, he said.

On Tuesday morning, the kiwi rose to 95.54 Australian cents from A95.48c late on Monday. It was little changed at 58.65 British pence and traded at 5.0174 yuan from 5.0196 yuan. It fell to 81.71 yen from 82.30 yen.

The trade-weighted index was at 79.44 from 79.38.

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