Investing.com - The Australian dollar posted mild gains on Thursday after November employment data came in largely as expected, but did show a solid increase in new jobs that underpinned some expectations that the central bank will stay on hold at its next board meeting in February 2014.
AUD/USD traded at 0.9056, up 0.07% after the employment data that showed a 5.8% unemployment rate and 64.8% particiapation rate, both as expected, but also showed 21,000 new jobs, well above some estimates around 10,000.
NZD/USD traded at 0.8286, up 0.33%, after the Reserve Bank of New Zealand Thursday kept its official cash rate at 2.5% as expected, while warning that inflation pressures are starting to build and it will increase interest rates as needed to keep within its inflation target of 1% to 3%.
"Annual CPI inflation increased to 1.4% in the September quarter and inflation pressures are projected to increase," Governor Graeme Wheeler said.
"The extent and timing of such pressures will depend largely on movements in the exchange rate, changes in commodity prices, and the degree to which momentum in the housing market and construction activity spills over into broader cost and price pressures," he added.
"The bank will increase the OCR as needed in order to keep future average inflation near the 2% target midpoint."
USD/JPY traded at 102.63, up 0.20%, largely on chances for the Fed to avoid any decision on tapering its asset purchase program next week.
Overnight, the dollar extended losses on the timing of any changes to the Fed's USD85 billion in monthly asset purchases that originally had been seen as possible on a surprisingly strong November jobs report ast week.
Elsewhere, lawmakers agreed on a way out of a budget impasse that could clear up U.S. fiscal uncertainties and convince the Fed it no longer needs to support the economy with monetary tools.
Senate Democrats and Republicans agreed on a deal setting a 2014 budget at USD1.012 trillion, and a 2015 budget at USD1.014 trillion in a fiscal plan that would reduce automatic spending cuts and deficit levels by USD23 billion over two years.
Still, a general murkiness as to whether or not the U.S. central bank will wait until early 2014 after reviewing more economic indicators before deciding on tapering softened the greenback on Wednesday.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.02% at 79.88.
AUD/USD traded at 0.9056, up 0.07% after the employment data that showed a 5.8% unemployment rate and 64.8% particiapation rate, both as expected, but also showed 21,000 new jobs, well above some estimates around 10,000.
NZD/USD traded at 0.8286, up 0.33%, after the Reserve Bank of New Zealand Thursday kept its official cash rate at 2.5% as expected, while warning that inflation pressures are starting to build and it will increase interest rates as needed to keep within its inflation target of 1% to 3%.
"Annual CPI inflation increased to 1.4% in the September quarter and inflation pressures are projected to increase," Governor Graeme Wheeler said.
"The extent and timing of such pressures will depend largely on movements in the exchange rate, changes in commodity prices, and the degree to which momentum in the housing market and construction activity spills over into broader cost and price pressures," he added.
"The bank will increase the OCR as needed in order to keep future average inflation near the 2% target midpoint."
USD/JPY traded at 102.63, up 0.20%, largely on chances for the Fed to avoid any decision on tapering its asset purchase program next week.
Overnight, the dollar extended losses on the timing of any changes to the Fed's USD85 billion in monthly asset purchases that originally had been seen as possible on a surprisingly strong November jobs report ast week.
Elsewhere, lawmakers agreed on a way out of a budget impasse that could clear up U.S. fiscal uncertainties and convince the Fed it no longer needs to support the economy with monetary tools.
Senate Democrats and Republicans agreed on a deal setting a 2014 budget at USD1.012 trillion, and a 2015 budget at USD1.014 trillion in a fiscal plan that would reduce automatic spending cuts and deficit levels by USD23 billion over two years.
Still, a general murkiness as to whether or not the U.S. central bank will wait until early 2014 after reviewing more economic indicators before deciding on tapering softened the greenback on Wednesday.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.02% at 79.88.