Australian Up against the Kiwi on Employment Reports

By TraderVox.com

Tradervox.com (Dublin) – The Aussie appreciated against the kiwi for a third straight day after data from Australian showed that payrolls increased in July while unemployment increased in New Zealand. The Australian dollar reached its strongest in four months against the New Zealand counterpart as regional shares advanced on Chinese inflation data which is projected to offer positive news in the Asia’s largest economy. A report on retail sales and industrial production in China is expected to be released today in Beijing.

Talking about the Australian job’s data, Andrew Salter, who is a Currency Strategist at Australian & New Zealand Banking Group Ltd in Sydney said that it was on balance and better than market expectation. He also predicted that the Aussie-kiwi pair will continue to increase this week. As the Australian currency was doing well in the market, the ten-year government bond yields gained 0.02 percentage point to reach 3.34 percent. However, in New Zealand, the two-year swap rate dropped by 0.05 percentage point to reach 2.78 percent today. The MSCI Asia Pacific Index for regional stocks increased by 0.9 percent, making this the fourth day in a row for the Asian stocks to rise.

The number of people who got employment in July rose to 14,000 according to a report from the Statistics Bureau in Australia. This was higher than the market prediction of 10,000 people. The unemployment rate in the country dropped to 5.2 percent in July from 5.3 percent registered in June. Report from China indicated that consumer prices increased by 1.8 percent in July while the Producer Price Index dropped by 2.9 percent. In Wellington, a Statistics New Zealand report showed that employment fell by 0.1 percent for the second quarter while unemployment rate increased from 6.7 percent to 6.8 percent.

The Australian currency advanced by 0.4 percent against the New Zealand counterpart to trade at NZ$1.3021. The Aussie increased against the US dollar to trade at $1.0613, which is the strongest since March 20.

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