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Forex - Kiwi, Aussie move lower after downbeat N.Z. jobs data

Published 08/02/2017, 02:19 AM
Kiwi and Aussie decline as N.Z. data disappoints in late trade
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Investing.com - The New Zealand and New Zealand dollars moved lower against their U.S. counterpart on Wednesday, after the release of downbeat New Zealand jobs data, while investors turned to an upcoming report on U.S. private sector employment due later in the day.

NZD/USD dropped 0.54% to 0.7429, just off a one-week low of 0.7416 hit overnight.

Statistics New Zealand reported that the number of employed people fell by 0.2% in the second quarter, disappointing expectations for a 0.7% rise and after an increase of 1.2% in the three months to March.

However, the unemployment rate ticked down to 4.8% in the last quarter from 4.9% in the first quarter of 2017, in line with expectations.

AUD/USD slipped 0.15% to trade at 0.7957.

Meanwhile, sentiment on the greenback remained vulnerable amid deepening political turmoil in Washington and diminished expectations for a third rate hike by the Federal Reserve this year.

The subdued inflation outlook has raised doubts over whether the Fed will be able to stick to its planned tightening path.

Fading hopes for tax reforms and fiscal stimulus under the turbulent Trump administration have also weighed on the dollar.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 92.92, just off the previous session’s 13-month low of 92.64.

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