The Australian dollar ended two days of declines against the U.S. currency before a government report tomorrow that economists said will show the nation added the most jobs in three months.
New Zealand’s currency rose from near a one-week low as crude oil approached the highest level in three weeks and Asian stocks snapped yesterday’s decline, boosting demand for higher-yielding assets. Gains in the kiwi were trimmed after Auckland-based Fonterra Cooperative Group Ltd., the world’s largest dairy exporter, said whole-milk powder auction prices fell to a level not seen in six months.
“The Aussie seems pretty well supported at the moment and there’s certainly some upside based around the market’s appetite for risk,” said David Greene, a Sydney-based senior corporate currency dealer at Western Union Business Solutions, a global payment services network. “If the jobs release is in line with expectations, the Aussie will be well supported and we may see a slight lift.”
Australia’s dollar was unchanged at $1.0693 at 10:32 a.m. in Sydney from yesterday in New York. The currency fetched 86.54 yen from 86.69 yen. New Zealand’s dollar bought 82.70 U.S. cents from 82.51 cents yesterday, when it fell as low as 82.34, the least since June 29. It traded at 66.94 yen from 66.89.
Australia Jobs Data
The number of people employed in Australia rose by 15,000 in June, the statistics bureau will say tomorrow according to the median economist estimate in a Bloomberg News survey.
Crude oil rose 0.2 percent after yesterday gaining $1.95 to $96.89, the highest settlement since June 14. The MSCI Asia Pacific Index was little changed, snapping yesterday’s 0.2 percent decline.
Fonterra said today that powder for September delivery fell 7.4 percent from three weeks earlier, according to a trade-weighted price index calculated by the company after its latest GlobalDairyTrade auction. The average price was $3,666 a metric ton, the lowest since the Jan. 5 auction.
Prices have dropped 26 percent since hitting a record in early March amid expectations of greater supply from New Zealand and more northern hemisphere milk products entering the market.