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NZ dollar up again against Aussie

NZ Newswire logoNZ Newswire 2/06/2017

<p>NZ Dollar</p> © Bloomberg

NZ Dollar

The New Zealand dollar continued to gain slightly against the Aussie on Friday, despite an improvement in iron ore prices.

It also held steady against the greenback ahead of key US jobs data.

The kiwi was at US70.76c at 5pm from 70.63c at 8 am and 70.75c Thursday. It traded at A95.70c from 95.60c Thursday.

Tim Kelleher, head of institutional foreign exchange sales at ASB Bank, said the market had been "washing around" ahead of US jobs data later in the global trading day.

The "non-farm payrolls data will be the focus of it all. I would imagine it would be a very good number", he said.

Overnight in the US, the ADP employment survey showed 253,000 jobs added in May, compared to a forecast 180,000, boosting speculation the official non-farm payrolls data will also be strong.

A better-than-expected number will give the US dollar a lift and will weigh on both the kiwi and the Aussie, said Mr Kelleher.

He noted, however, New Zealand dollar trading is likely to be thin given that Monday is a public holiday.

He said the Aussie recovered slightly on the day because of an improvement in iron ore but noted it barely budged against the kiwi.

The kiwi remained around a 4-month high against the Aussie on optimism the local economic outlook favours the kiwi over its trans-Tasman counterpart.

Looking ahead, Mr Kelleher said next week's gross domestic product data across the Tasman as well as the Reserve Bank of Australia's rate decision will be closely watched.

The kiwi traded at 63.07 euro cents from 62.91 cents and at 54.95 British pence from 54.97 pence. It rose to 4.8218 yuan from 4.8028 yuan and traded at 78.96 yen from 78.50 yen. The yen lost ground in Asia ahead of the US jobs data.

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