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Forex - NZD/USD down as U.S. jobs report lingers

Published 10/21/2013, 11:11 PM
Updated 10/21/2013, 11:12 PM
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Investing.com - The New Zealand dollar traded lower against its U.S. rival during Tuesday’s Asian session as traders await the release of the previously delayed September non-farm payroll report out of the U.S.

In Asian trading Tuesday, NZD/USD fell 0.12% to 0.8446. The pair was likely to find support at 0.8416, the low of October 17 and resistance at 0.8556, the high of June 5.

The September jobs report for the U.S., originally due out October 4 but delayed because of the shutdown, is due out later Tuesday. Economists expect the addition of 180,000 new jobs and for the unemployment rate to stay at 7.3%.

It is widely expected that the recent shutdown took a bite out of U.S. economic output and that will be reflected in fourth-quarter data points. The silver lining on that front is weak data could force the Federal Reserve to delay tapering its USD85 billion-a-month quantitative easing program.

Some economists have pegged March 2014 as the start of tapering with the size of the Fed’s asset-buying being reduced USD70 billion-a-month.

However, that means tapering would be one of Janet Yellen’s first acts as Fed chair, probably something she does not want to engage in. Yellen is seen as dovish.

Of 10 strategists surveyed by the New Zealand Herald at the start of this week, seven expect the kiwi to rise while one thinks it will fall. Two predict a flat performance.

In U.S. economic news out Monday, the National Association of Realtors reported earlier that total existing home sales declined 1.9% to a seasonally adjusted annual rate of 5.29 million units in September from a downwardly revised 5.39 million in August, mainly due to home prices outpacing income growth. Analysts were expecting to see 5.30 million units sold.

Elsewhere, NZD/JPY inched up 0.03% to 83.05 while AUD/NZD nudge higher by 0.01% to 1.1421.


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