The NZDUSD opens markedly lower 0.7700 this morning – a little above 12-month lows.
Friday night’s US non-farm payroll employment numbers exceeded expectations, and prior months’ figures were revised higher.
The unemployment rate held steady at 7.6% as the improving job market encouraged more people to enter the job market.
The USD soared and NZDUSD, Gold, and Commodity Prices all tumbled sharply in direct response to the US job numbers, which reinforced expectations the US Federal Reserve could begin tapering its asset purchases as early as September.
Global equity markets were mixed. US equity markets gained 1%, UK & European bourses dropped sharply, and Asia markets came solid gains.
The Gold Price plunged over 2% to USD$1223 an ounce. Oil jumped USD$2 per barrel while base metals prices all showed sharp losses.
The NZD opens at 0.7700 USD, 0.8510 AUD, 0.6010 EUR, 0.5170GBP, & 77.90 JPY.
There is no domestic data due today.
Australian ANZ Job Ads will be released at 1:30pm.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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