Stronger-than-expected Australian jobs data temporarily pushed the flightless kiwi dollar up yesterday, but the local currency could not sustain the level and closed down.
A huge jump in employment in July is one of a growing number of indications that the Australian economy is moving full steam ahead, economists say.
Employment in July leaped 75,700 last month, seasonally adjusted, driving the unemployment rate down to 6.3 per cent.
Currency dealers said the data had added to the already bearish tone.
Deutsche Bank foreign exchange vice-president Andrew Burdon said the dollar "popped up" on the back of the employment data but could not hold it.
The kiwi ended the day weaker at US45.13c, from Wednesday's close of 45.36c. It traded in a 45.12-24c range yesterday.
"The markets have been pretty quiet - the kiwi is just sitting idle.
"It's looking for some impetus," said Mr Burdon.
The Trade Weighted Index fell to 51.10, from 51.41 at 5 pm yesterday.
With the yield on 90-day bank bills a notch higher at 6.75 per cent, the Monetary Conditions Index eased to minus 579, from minus 550.
In the bond market, the Government's bond tender was poorly bid, with a total of just $442 million in bids for $125 million each of April 2003 and November 2011s offered.
- NZPA
<i>Currency:</i> Kiwi "pops up" on Aust data
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