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23 May 2013 3:27
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      Home > News > Business

    Kiwi gains on Australian jobless rate fall

    The New Zealand dollar gained against the greenback, as traders jumped on the lower headline figure of 5.1 per cent unemployment in Australia.


    The New Zealand dollar gained in thin trading after Australia's unemployment rate unexpectedly fell.

    The kiwi edged up to 79.56 US cents at 5pm in Wellington from 79.43 cents at 8am and 79.45 cents on Wednesday.

    The trade-weighted index was little changed at 71.62 from 71.63 on Wednesday.

    Australia's jobless rate fell to 5.1 per cent last month, according to government figures, as the participation rate shrank to 65 per cent and the workforce fell by 8,800.

    Traders jumped on the headline figure, lifting the Australian dollar 0.3 per cent to $US1.0213.

    The figures come after Wednesday's slowing pace of growth in the second quarter weighed on support for Australian assets.

    "The kiwi got dragged higher on the back of the Aussie jobs data," said Tim Kelleher, head of institutional FX sales at ASB Institutional.

    "If you look at the detail and the participation, people stopped looking for jobs."

    Markets are preparing for the European Central Bank meeting on Thursday where president Mario Draghi is expected to unveil plans for an unlimited bond buying plan for distressed government debt with maturities of up to three years.

    The bank has been looking at ways to protect the region's single currency and shore up the euro-zone's fragile financial stability.

    The kiwi fell to 63.13 euro cents, near a two-month low, from 63.34 cents on Wednesday.

    It was little changed at 77.87 Australian cents from 77.88 cents and 62.40 yen from 62.47 yen.


    NZN




    © 2013 NZN, NZCity


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