The New Zealand dollar was heading for a 0.7 per cent weekly decline, after being dragged lower by a weaker Australian dollar, as traders are awaiting US payrolls data.
The kiwi was trading at US68.34c at 5pm today from US68.60c late on Thursday and from US68.85c a week ago. It was at A90.93c from A90.85c late on Thursday as the aussie traded near a six-month low at US75.13c.
The aussie was weighed on by soft trade data for October, weak iron ore markets and a firmer US dollar. The greenback has strengthened on optimism about the progress of US tax reforms, reports US President Donald Trump is confident he can strike a deal to lift the US debt ceiling and ahead of the payrolls data with investors expecting 200,000 new jobs in November.
Sheldon Slabbert, a trader at CMC Markets, said markets might be disappointed in the payrolls figures. While the jobs numbers might look healthy, a lack of wage growth "will probably see the US dollar sell off", he said.
He noted, however, while the kiwi might open higher on Monday, it would continue to struggle as the US Federal Reserve lifts rates while the Reserve Bank of NZ remains firmly on hold and there is evidence of a slowdown in housing, business confidence is waning and the dairy sector is coming under pressure.
