Asia Recap: Kiwi tumbles on NZ jobs, dairy auction

By FXstreet.com | August 05, 2014 AAA

FXStreet (Bali) - The Kiwi was once again the worst performing currency in Asia, following a mix jobs report (expectations were quite high) and continuous declines in New Zealand dairy action prices.

Late in the US session, we learnt that another negative global dairy trade auction for the interest of Kiwi traders, one which saw an overall decline of -8.4% in USD terms. Whole Milk Powder was down 11.5% from three weeks ago, while other products also declined significantly.

The came the NZ jobs report, which only exacerbated NZD's pain, with data published by the NZ Household Labour Force for June 2014 unable to content a market that remains with a strong bearish sentiment towards the Kiwi. While the unemployment rate fell 0.3% to 5.6%, on the negative side, the labour force participation rate decreased 0.3%points, to 68.9%, and the emplyment growth only saw a +0.4% increase vs +0.7% exp.

The rest of G10 currencies showed muted moves, including the Australian Dollar, which awaits Thursday's employment data and Friday's RBA quarterly monetary policy statement, and also the Japanese Yen, which whipsawed in a tight range even with the Nikkei 225 down over 1%.

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