NZ Dollar Drops After Weak China Data; Nonfarm Payrolls Eyed
03 June 2021 - 1:23PM
RTTF2
The NZ dollar fell against its major counterparts in the Asian
session on Thursday, as China's service sector activity slowed in
May and investors awaited key U.S. economic data that could set the
tone of policy.
Data from IHS Markit showed that China's services sector
expanded at a slower pace in May.
The Caixin services Purchasing Managers' Index dropped to 55.1
in May from a four-month high of 56.3 in April. Nonetheless, the
score remained firmly above the neutral 50.0 level to suggest a
marked growth in activity.
ADP private payrolls data and initial jobless claims are due
later in the day, followed by monthly jobs report on Friday. The
data could offer more clues on economic recovery and whether the
rebound will accelerate inflation, triggering a tightening of
monetary policy.
The Federal Reserve's announcement to begin gradually selling
corporate bond holdings purchased through an emergency lending
facility introduced last year served as a signal of termination in
pandemic support.
The kiwi depreciated to a 9-day low of 0.7208 against the
greenback, pulling away from its early high of 0.7242. On the
downside, 0.70 is possibly found as its next support level.
The kiwi declined to 8-day lows of 79.15 against the yen, 1.6909
against the euro and 1.0720 against the aussie, after rising to
79.39, 1.6855 and 1.0694, respectively in early deals. The kiwi is
seen locating support around 76.00 against the yen, 1.70 against
the euro and 1.09 against the aussie.
Looking ahead, PMI reports from major European economies are due
in the European session.
U.S. ADP private payrolls data for May is scheduled for release
at 8:15 am ET.
The U.S. weekly jobless claims for the week ended May 29 and ISM
services PMI for May will be released in the New York session.
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