NZ dollar holds gains against greenback

NZ dollar holds gains against greenback; eyes on US jobs data

By Rebecca Howard

June 7 (BusinessDesk) - The New Zealand dollar remained firm but largely range-bound with pending US jobs data capping some of the risk appetite gained on news that US-Mexico tariffs may be delayed.

The kiwi was trading at 66.23 US cents at 8am from 66.26 US cents at 5pm in Wellington. The trade-weighted index was at 72.65 points from 72.76.

Markets were cheered after Bloomberg cited unidentified sources saying that US President Donald Trump could delay the tariffs he had threatened to put on Mexican goods as soon as Monday. Investors, however, were cautious after Trump said he would decide whether to carry out his threat to hit Beijing with tariffs on at least US$300 billion in Chinese goods after a meeting of leaders of the world’s largest economies later this month.

The kiwi was also helped as some US data weighed on the greenback. The US April trade deficit narrowed but both exports and imports were weaker. ANZ Bank FX/rates strategist Sandeep Parekh said the focus will now be on the US non-farm payrolls data, due later in the global trading day.

"Should it come in weaker, it will only put more pressure on US rate cut expectations and thus the USD," he said.

Capital Economics is expecting a 190,000 gain in non-farm jobs. "That said, the weak ADP employment report released on Wednesday suggests the risks to that forecast lie firmly to the downside." It also expects a small lift in the unemployment rate to 3.7 percent in May, from 3.6 percent.

The New Zealand dollar was trading at 94.90 Australian cents from 94.97, at 52.17 British pence from 52.21, at 58.72 euro cents from 58.98, at 71.83 yen from 71.70 yen and at 4.5746 Chinese yuan from 4.5811.

(BusinessDesk)

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