CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the High risk of losing your money.

Kiwi Down In Asia After Mixed Jobs Data, Eye On Dollar After US Rebound

2/7/2018, 11:45:10 AMTrading Strategies
Kiwi Down In Asia After Mixed Jobs Data, Eye On Dollar After US Rebound

The kiwi fell after mixed jobs data on Wednesday with markets keeping a close eye on the dollar following a US market recovery overnight.

NZD/USD traded at 0.7331, down 0.13%. New Zealand reported fourth quarter labor cost index data with a 0.4% gain on quarter, compared to a 0.5% rise seen, and at a 1.9% pace on year as seen. As well, the unemployment rate fell to 4.5%, compared to an expected 4.7% and down 4.6% previously under a participation rate at 71.00%.

USD/JPy changed hands at 109.61, up 0.06%, while AUD/USD traded at 0.7893, down 0.14%.

Later, Japan reports average cash earnings for December with a 0.7% rise expected, down from 0.9%.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last quoted down 0.06% to 89.52. The Dow Jones Industrial Average closed higher at 24,914.49. The S&P 500 closed 1.75% higher, while the Nasdaq Composite closed at 7115.88, up 2.13%. The Dow Jones fell to an intraday low of 23,784 before staging a remarkable 1,100 move upside to end the day 550 points higher.

Overnight, the dollar retreated from highs against a basket of major currencies amid mostly bearish economic data and dovish comments from St. Louis Federal Reserve president James Bullard.

A pair of economic reports on the labour market and trade fell short of expectations, weighing on the dollar, and reminded investors that there is some sluggishness remains in the economy.

The U.S. Labor Department's latest Job Openings and Labor Turnover Survey (JOLTs) report, a measure of labor demand, showed job openings in December fell to about 5.81m, short of expectations for 5.96m.

The trade deficit — which measures the gap between what the United States imports and what it exports — widened to $53.1 billion in December, up $2.7 billion from November.

St. Louis Federal Reserve president James Bullard attempted to curb expectations that rising wage growth would spur faster inflation, warning that nominal wages were not a good predictor of inflation. Bullard also said that that he favors low rates for an extended period, and expected that the Fed's dot plot may be less useful.