The New Zealand dollar dropped slightly against the world's reserve currency on Friday in advance of the U.S. Labor Department's release of jobs data, The Wall Street Journal reports.
The labor market data in the globe's largest economy is likely to influence decisions of the U.S. Federal Reserve regarding monetary stimulus measures. On two occasions during the past two months, the Fed has opted to taper policy by $10 billion.
"The only obvious explanation is the improvement in risk appetite last night," senior market strategist Imre Speizer with Westpac Bank in New Zealand told The New Zealand Herald on Friday. "There was no fresh catalyst for that improvement, it is simply that emerging markets remain stable and that is benefiting the risky currencies like the Aussie and the kiwi."
The kiwi edged up from its Wednesday close against the dollar after New Zealand observed a public holiday on Thursday, according to The Wall Street Journal.
The kiwi climbed early Friday morning against the greenback as the Reserve Bank of Australia was set to release the Statement on Monetary Policy later in the trade session, The New Zealand Herald reports.
Risk Disclosure
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.