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Forex - Kiwi gains ground as greenback rally pauses

Published 10/06/2014, 02:56 AM
Kiwi rises but greenback remains supported
NZD/USD
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AUD/NZD
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Investing.com - The New Zealand dollar was higher against its U.S. counterpart on Monday, as the greenback took a breather from its recent rally against a basket of other major currencies sparked by upbeat U.S. employment data.

NZD/USD hit 0.7791 during late Asian trade, the session high; the pair subsequently consolidated at 0.7789, rising 0.33%.

The pair was likely to find support at 0.7707, the low of September 29 and a 14-month low and resistance at 0.7913, Friday's high.

The greenback strengthened broadly on Friday after the Labor Department reported that the U.S. economy added 248,000 jobs in September, well ahead of forecasts for jobs growth of 215,000. The unemployment rate ticked down from 6.0% to 5.9%, the lowest level since July 2008.

The robust data added to the view that the strengthening economic recovery may prompt the Federal Reserve to raise interest rates sooner than markets are expecting.

The kiwi was lower against the Australian dollar, with AUD/NZD adding 0.26% to 1.1192.

Also Monday, data showed that job advertisements in Australia rose 0.9% last month, after an increase of 1.6% in August, whose figure was revised from a previously estimated 1.5% gain.

Later in the day, New Zealand was to release private sector data on business confidence.

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