The New Zealand dollar fell against the Aussie dollar and the greenback. Photo / File
The New Zealand dollar fell against the Aussie dollar and the greenback after figures showed Australia's jobless rate dropped to its lowest level in more than four years.
The kiwi fell to 90.24 Australian cents as at 5pm in Wellington from 90.56 cents late yesterday. It declined to 68.55 US
cents from 68.71 cents yesterday.
Figures from the Australian Bureau of Statistics showed the unemployment rate fell to 5.4 per cent in October from 5.5 percent in September. Economists had expected the rate to remain steady. The data also showed 3,700 net new jobs were added in October. That was short of forecasts of a 17,500 rise, but September was revised up to a solid increase of 26,600 from the first estimate of a gain of 19,800.
OMF private client manager Stuart Ive said the biggest moves on the day came after the Aussie employment data that saw the unemployment rate drop. "The NZD/AUD was sold and that pushed it lower against the USD," he said. The move undid gains the kiwi had made yesterday against the Aussie when Australian wages accelerated by less than expected in the third quarter.
While the data painted a strong jobs picture, the market reaction may be short-lived given that wages growth remains tepid. "This employment report doesn't move the needle for the RBA's neutral stance, and is neutral for the markets," said Annette Beacher, chief Asia-Pac macro strategist for TD Securities.
