The New Zealand dollar edged lower overnight as traders await the key US non-farm payrolls employment report in anticipation a strong number could cement a September rate hike by the Federal Reserve.
The kiwi slipped to 71.14 US cents at 8am in Wellington, from 71.30 cents at 5pm yesterday. The trade-weighted index was little changed at 74.47 from 74.48 yesterday.
Today, the focus will be on the monthly US non-farm payrolls report, which is closely watched by the Federal Reserve as it weighs the likely timing of interest rate hikes this year. Data released yesterday showed US initial jobless claims fell by 8,000 to 276,000 in the final week of May, boosting optimism about the upcoming payrolls report for May.
"Most major currencies are relatively close to the levels prevailing yesterday morning," Raiko Shareef, currency strategist at Bank of New Zealand, said in a note. "Tonight, all eyes turn to the US employment reports. While the consensus picks a 225,000 gain, we suspect the market is readying itself for a better result than that. Much scrutiny will also fall on the wage growth numbers, which remain relatively subdued."
The Australian dollar fell yesterday after retail sales and trade data missed expectations. The New Zealand dollar advanced to 92.57 Australian cents from 92.20 cents yesterday.
