The AUD was relatively little moved against the USD and GBP on Friday as investors await the publication of eagerly anticipated nonfarm payrolls data out of the US. The NZD meanwhile softened for the first time in several days after the stubbornly high currency was weakened by a decline in international dairy prices.
The US data is the major focus of the day as it will give economists a clearer picture of the true state of the world’s largest economy. It will be the first jobs report published since the ending of a winter that impacted the economy and recent data reports due to harsh weather. The report is forecast to show the fastest rate of jobs growth in four months.
“This will be one of the more anticipated US employment reports in some time, as many will undoubtedly be expecting some sort of weather payback to materialise,” said an economist at RBC Capital Markets.
If the US data does come in strongly it raises the likelihood that the Federal Reserve will continue to taper the monetary easing programme which has weakened the US Dollar. A rise in the ‘Greenback’ is likely to knock the wind out of the ‘Aussie’s’ sails.
The New Zealand Dollar weakened on Friday and is forecast to end its run of weekly gains after international dairy prices fell to their lowest level in more than a year. The Global Dairy Trade Price Index fell by 8.9% to a 13-month low on Thursday.
The ‘Kiwi’ is expected to remain at its recent strong levels as demand for dairy goods remains high from Asia. Investors aren’t expecting a sharp drop of the currency.
The New Zealand currency is also likely to experience volatility from today’s US jobs data. A strong figure will see it fall along with its Australian relation.
Current Exchange Australian & New Zealand Dollar Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Australian Dollar,
,US Dollar,0.9242 ,
Australian Dollar,, Pound Sterling,0.5572 ,
Australian Dollar,,Euro,0.6745 ,
Australian Dollar,,New Zealand Dollar,1.0827 ,
New Zealand Dollar,,US Dollar,0.8536 ,
New Zealand Dollar,,Pound Sterling,0.5146 ,
New Zealand Dollar,,Euro,0.6230 ,
New Zealand Dollar,,Australian Dollar,0.9241 ,
[/table]
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