Kiwi drops as US private jobs and GDP data beats estimates
US private payrolls rose by 237,000 in August, beating estimates of a 185,000 gain.
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The New Zealand dollar fell below 72 US cents to a 2 1/2-month low as reports on US economic growth and private jobs printed stronger than expected.
The kiwi fell to 71.94 US cents as at 8am in Wellington and earlier touched 71.86 cents, the lowest since mid-June, from 72.61 cents late yesterday. The trade-weighted index fell to 75.50 from 75.89.
US private payrolls rose by 237,000 in August, beating estimates of a 185,000 gain, after a revised 201,000 jobs were added in July. The figures may cause some economists to revise up their forecasts for the official payrolls data out on Friday which is expected to show 180,000 jobs added this month. Meanwhile, second-quarter gross domestic product in the US rose at a revised 3 percent annual rate against expectations of a 2.7 percent gain.
"This put the USD in the ascendancy with broad-based gains with perhaps some extra support from month-end buying," said Doug Steel, an economist at Bank of New Zealand.
Locally, traders will be watching for the release of the ANZ Business Outlook today for evidence that business confidence remains robust.
Reserve Bank governor Graeme Wheeler said in a speech yesterday that "the prospects look promising" for continued robust economic growth in New Zealand over the next two years. He also said a lower New Zealand dollar "is needed to increase tradables inflation and help deliver more balanced growth", comments that briefly drove down the kiwi.
The local dollar rose to 91.05 Australian cents from 90.91 cents yesterday. It fell to 79.36 yen from 79.69 yen and fell to 4.7421 yuan from 4.7785 yuan. The kiwi slipped to 60.51 euro cents from 60.62 cents and declined to 55.68 British pence from 56.14 pence.
(BusinessDesk)
Jonathan Underhill
Thu, 31 Aug 2017
Thu, 31 Aug 2017
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Kiwi drops as US private jobs and GDP data beats estimates
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