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Forex - Kiwi drops against broadly stronger greenback

Published 12/07/2015, 02:17 AM
Kiwi declines against greenback after U.S. jobs report
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Investing.com - The New Zealand dollar dropped against its U.S. counterpart on Monday, as demand for the greenback remained broadly supported after Friday's upbeat U.S. nonfarm payrolls report.

NZD/USD hit 0.6691 during late Asian trade, the session low; the pair subsequently consolidated at 0.6700, declining 0.69%.

The pair was likely to find support at 0.6632, Friday's low and resistance at 0.6790, Friday's high and a one-month peak.

The greenback remained supported after the Labor Department reported on Friday that the U.S. economy added 211,000 jobs last month, after increasing an upwardly revised 298,000 in October.

The unemployment rate held steady at 5% in November. Economists had forecast jobs growth of 200,000 and no change in the unemployment rate.

The report hardened expectations that the Federal Reserve will hike interest rates for the first time since 2006 at its upcoming meeting on December 15-16. Higher U.S. interest rates would make the dollar more attractive to yield-seeking investors.

The kiwi was lower against the Australian dollar, with AUD/NZD climbing 0.63% to 1.0948.

Earlier Monday, data showed that job advertisements in Australia increased by 1.3% in November, after a 0.3% uptick the previous month.

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