The Australian and New Zealand dollars failed to extend gains from yesterday against the greenback before U.S. jobs data that may add to the case for the Federal Reserve to pare back stimulus.
The Aussie rose against most of its major peers yesterday as global stocks gained after the European Central Bank and Bank of England indicated looser monetary policy. Australia’s currency was 0.3 percent from the lowest since November 2008 against New Zealand’s dollar.
“The Aussie managed to emerge a little stronger after the ECB and Bank of England both indicated that they were inclined to loosen policy as needed,” said Sean Callow, a senior currency strategist at Westpac Banking Corp. (WBC) in Sydney. The U.S. payrolls data is “always a lottery as far as the number that hits the screens. The kiwi has still been a much stronger performer than the Aussie in recent weeks, but on the day it’ll just watch the global mood.”