NZ dollar gains after mixed US jobs data weighs on greenback

The kiwi dollar traded at 71.18 US cents as at 8am in Wellington, from 71.40 cents in New York on Friday.

The New Zealand dollar rose after US non-farm payrolls painted a mixed picture of the US labour market, with slightly fewer jobs created last month but with the unemployment rate falling to a nine-year low.

The kiwi dollar traded at 71.18 US cents as at 8am in Wellington, from 71.40 cents in New York on Friday and from 70.96 cents in Asia at the end of last week. The trade-weighted index rose to 78.30 from 78 in Wellington on Friday.

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The US economy added 178,000 jobs last month, just shy of the 180,000 jobs forecast in a Reuters survey, while the American jobless rate fell to 4.6 per cent, the lowest level since 2007. Average hourly earnings declined 0.1 per cent in November against expectations of a 0.2 per cent gain. The report cemented already-strong bets that the Federal Reserve will raise its key interest rate next week. Expectations that US President-elect Donald Trump will boost government spending, and therefore corporate profits, have bolstered equities as well as yields on US Treasuries since his November 8 election victory, although Treasury yields and the US dollar index fell at the end of last week.

"After the strong post-Trump rally it's clear that a bit more two-way flow has returned to the USD and we expect it to show further signs of consolidation into year-end, before the upward trend returns," said Jason Wong, currency strategist at Bank of New Zealand.

The outcomes of Italy's referendum and Austrian presidential elections will help determine the mood at the start of a week during which the European Central Bank is expected to extend its asset purchase programme. The kiwi dollar rose to 66.98 euro cents from 66.88 cents in New York and from 66.37 cents in Wellington on Friday.

Also this week, investors are awaiting US Federal Reserve officials William Dudley, Charles Evans, and James Bullard-scheduled to speak today at separate events-who may offer fresh clues on the path of interest rates next year. The latest GlobalDairyTrade auction this week is expected to show further gains in New Zealand's key export commodity of whole milk powder.

The kiwi traded at 95.57 Australian cents from 95.76 cents in New York on Friday and from 95.69 cents in Asia at the end of last week. It traded at 4.9007 yuan from 4.9124 yuan in New York and up from 4.8825 yuan in Wellington on Friday. The local currency was at 80.82 yen, down from 81.04 yen and fell to 56 British pence from 56.11 pence in New York last week.