NZ Dollar Climbs Ahead Of U.S. Jobs Data

The New Zealand dollar strengthened against its major counterparts in the early European deals on Friday, as European shares rose ahead of a key jobs data that could point to further rate cuts in the U.S.

U.S. employment is expected to increase by 140,000 jobs in September after an increase of 130,000 jobs in August. The unemployment rate is seen holding at 3.7 percent.

A weak data could trigger hopes for further reduction in interest rates when the Fed meets later this month.

CME Group's FedWatch tool now points to a 90 percent chance for a quarter point rate cut in October.

Recent data showed that U.S. manufacturing PMI fell to a 10-year low, while the services PMI recorded its lowest reading since 2019.

The currency has been trading higher against its major counterparts in the previous session.

The kiwi appreciated to a weekly high of 1.7336 against the euro from Thursday's closing value of 1.7398. The next possible resistance for the kiwi is seen around the 1.70 level.

The kiwi rallied to a 9-day high of 0.6332 against the greenback, up from yesterday's closing quote of 0.6299. If the kiwi rises further, it may find resistance around the 0.66 level.

The NZ currency hit a 3-day high of 67.60 against the yen from yesterday's trading close of 67.34. The kiwi is seen finding resistance around the 69.00 mark.

The kiwi climbed to 1.0675 against the aussie, its strongest since September 11. Next immediate resistance for the kiwi is seen around the 1.05 level.

Data from the Australian Bureau of Statistics showed that Australia's retail sales increased in August.

Retail sales advanced 0.4 percent on month, following a flat growth a month ago. This was the fastest growth in four months. However, the pace of growth was slightly slower than the expected 0.5 percent.

Looking ahead, U.S. and Canadian trade data for August, U.S. jobs data and Ivey PMI for September will be released in the New York session.