Daily Morning Report 03.02.2016

The New Zealand dollar rose on Wednesday, boosted by a robust domestic jobs report, while the Australian dollar pushed higher as modest gains in oil prices bolstered risk appetite.

The kiwi strengthened after Statistics New Zealand reported that the unemployment rate unexpectedly fell to 5.3% from 6% in three months to December. It was the lowest reading since March 2009.

Economists had expected the jobless rate to tick up to 6.1%.

The better-than-expected labor market data was seen as pushing back the chances for a rate cut by the Reserve Bank of New Zealand.

The data came a day after RBNZ Governor Graeme Wheeler left the door open to more easing, warning that “most of the risks facing the economy are downside ones.”

The Aussie pushed higher against the greenback, with AUD/USD rising 0.21% to 0.7052.

The Aussie was also higher against the yen, with AUD/JPY rising 0.33% to 84.68 recovering from overnight lows of 83.69.

The Aussie was also higher against the yen, with AUD/JPY rising 0.33% to 84.68 recovering from overnight lows of 83.69.

The yen had strengthened across the board on Tuesday as oil prices fell sharply on oversupply fears and concerns over slowing global growth.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, edged up to 98.95 as investors looked ahead to U.S. data on private-sector hiring and service sector activity later in the day.