The New Zealand dollar moved little today as markets waited for the release of United States jobs data tonight.
The data is considered pivotal in determining market expectations for whether or not the US Federal Reserve will raise interest rates for an 18th straight time at its policy meeting next week.
At 5pm the NZ dollar was buying US61.97c from US61.90c at 8am today. It was at A81.29c from A81.33cm, 0.4842 euro from 0.4833, and 71.32 yen from 71.12. The TWI was at 61.79 from 61.70
ASB said NZ labour market data next week would provide fresh direction for the NZ dollar.
As New Zealand interest rate differentials with the rest of the world narrowed, and growth continued to moderate, the medium term downtrend for the kiwi looked to remain in place, it said.
Weaker than expected New Zealand labour market data next week could support near term downward pressure.
BNZ currency strategist Danica Hampton said the story in currency markets overnight was about central banks.
Currencies with hawkish central banks, such as the euro and the pound, performed strongly, she said.
Currencies such as the NZ dollar, with central banks perceived to be dovish, tended to under-perform.
The US dollar steadied against the euro today, getting some respite after falling the previous day following a rise in interest rates by the European Central Bank.
ECB President Jean-Claude Trichet, speaking after the ECB's rate decision, said the central bank would monitor all developments closely to ensure price stability, boosting market expectations for another ECB rate rise in October.
Reuters currency rates:
5pm today 5pm yesterday
NZ dlr/US dlr US61.97c US62.152c
NZ dlr/Aust dlr A81.29c A80.40c
NZ dlr/euro 0.4842 0.4873
NZ dlr/yen 71.32 71.38
NZ dlr/stg 32.86p 33.14p
NZ TWI 61.79 62.02
Australian dollar US76.23c US76.38c
Euro/US dollar US1.2796 US1.2755
US dollar/yen 115.09 114.78
- NZPA
<i>Currency:</i> Limited movement by NZD ahead of US jobs data
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