Kiwi in brief skid after weak jobs data, Aussie pressured by dovish RBA turn

Business Recorder reported that the New Zealand dollar touched a three-week low on Wednesday after labour figures weakened expectations of a rate increase next month. It later recovered to $0.5612, up 0.4%, as traders sold the US dollar ahead of the US midterm elections. New Zealand’s jobless rate reached 5.7% in the third quarter, the highest since 2015, while employment fell unexpectedly.

Markets reduced the implied likelihood of a Reserve Bank of New Zealand rate rise next month to 57%, from nearly 80% before the figures. The Australian dollar gained 0.2% to $0.6977 after falling 0.5% overnight, as investors interpreted the Reserve Bank of Australia’s narrower 6-3 vote and removal of its tightening bias as signs that rapid rate increases could be over. Markets priced just 6 basis points of further tightening by early next year and 23 basis points of easing by the end of next year.