New Zealand Dollar Treads Firm on Monday Morning, Expected to Decline Later

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New Zealand Dollar Treads Firm on Monday Morning, Expected to Decline LaterThe New Zealand dollar remained slightly unchanged don Monday morning after U.S. Independence Day celebrations last Friday though it is expected to lose ground due to impressive U.S. economic reports last week.

The kiwi traded at 87.44 US cents as of 8am in Wellington, compared with 87.49 cents at the close of Friday trade in Wellington and New York close of 87.38 cents. The New Zealand dollar fell to 93.33 Australian cents from Friday’s close of 93.43 cents. It was also slightly unchanged at 64.32 euro cents from Friday close of 64.28 cents and also held firm at 50.95 UK pence and fell to 89.20 yen, compared with 89.27 yen on Friday.

The U.S. dollar index, which monitors the U.S. dollar against a pool of major currencies, advanced after the Labor Department reported that employers hired more workers than projected in June while unemployment rate fell.

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U.S. nonfarm payrolls surged to 288,000 while unemployment rate fell to 6.1 percent last month from May’s reading of 6.3 percent. The strong economic data has fuelled speculation when the Federal Reserve may begin increasing interest rates.

“It will be interesting to see if we can’t continue the theme of a stronger US dollar after the payrolls and the unemployment number last Thursday,” Martin Rudings, OMF senior dealer, foreign exchange told New Zealand Herald. “That should resonate through the market and maybe unlock the door for US interest rates to go a little bit higher now. It really is confirming that the labour market is growing in the States and the market can take a bit of confidence from that.”

The Quotable Value, which covers data on property valuations, is expected to release its newest monthly report at noon today. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.

To contact the reporter of this story; Yashu Gola at yashu@forexminute.com