The New Zealand dollar tumbled as investors subscribed to the projection better jobs data this week will imply the US economy is improving, favoring the US dollar.
Traders were awaiting the April US nonfarm payrolls data due Friday, believing the world’s biggest economy may begin to pick up in the 2nd quarter after a slowdown in the previous quarter.
The kiwi slid to 67.32 euro cents from Friday’s 67.66 euro cents, 75.30 US cents from 75.85 US cents, and ¥90.51 from ¥90.74. But it advanced to 49.69 British pence from 49.41 British pence.
Given last month’s weak job growth and huge improvement in jobless claims, “everyone expects a significant rebound in payroll growth,” said Kathy Lien, Managing Director of FX Strategy at BK Asset Management.
Meanwhile, markets will await the ANZ Commodity Index due today, as well as the HSBC report on Chinese manufacturing activity.
The material has been provided by InstaForex Company – www.instaforex.com