Kiwi Falls After NFP Report

The New Zealand dollar fell to $0.61, the lowest in almost 2 weeks as stronger than expected US jobs report boosted the USD. The US nonfarm payrolls increased by 199K in November, above market expectations of 180K, the jobless rate edged down to 3.7% and wages grew more than expected pointing that the expectations for Federal Reserve rate cuts early next year might have been excessive.

Domestically, the Reserve Bank of New Zealand held interest rates steady at 5.5% for the fourth straight meeting in November, despite growing calls for a rate cut due to decelerating inflation and sluggish economic data.

The RBNZ warned that another rate hike may be necessary if inflation proves stubborn.