You are using an older browser version. Please use a supported version for the best MSN experience.

Kiwi steady in market holding pattern

NZ NewswireNZ Newswire 31/08/2016 Jonathan Underhill

The New Zealand dollar was little changed against the greenback and gained against the Australian dollar as traders await a key US labour market report for clues to the next US interest rate hike.

The kiwi traded at US72.49 cents as at 8am on Thursday in Wellington from US72.51c late Wednesday. The trade-weighted index gained to 77.40 from 77.36.

US companies added 177,00 jobs in August, according to the ADP private sector payroll report overnight, keeping in place forecasts for the official non-farm payrolls data on Friday of about 180,000 jobs.

With Federal Reserve officials talking up the prospects of a rate hike as soon as September, depending on upcoming data, the labour market figures have taken on even more significance than usual.

"The market appears to be in a holding pattern ahead of Friday night's US employment report," said BNZ currency strategist Jason Wong

"It will take a stronger than expected (payrolls) figure to change current expectations of about a one in three chance of the Fed tightening again as soon as September."

On Thursday morning, the New Zealand dollar gained to 96.43 Australian cents, and earlier reached A96.60c, from A96.29c late on Wednesday.

The kiwi rose to 74.92 yen from 74.65 yen and was little changed at 4.8386 yuan from 4.8388 yuan. It was little changed at 64.96 euro cents and slipped to 55.18 British pence from 55.29p.

image beaconimage beaconimage beacon