Australia’s dollar fell from a more than two-week high before an ADP Research Institute report that may show companies in the U.S. added jobs last month, reinforcing the case for the Federal Reserve to reduce stimulus.
New Zealand’s currency also declined before tomorrow’s U.S. Labor Department jobs report, which may fuel expectations for the Fed to reduce its bond purchases at its meeting on Sept. 17-18. The Aussie held three days of gains against the euro and pound before The European Central Bank and the Bank of England conclude policy meetings today.
“A large ADP surprise could move the Aussie as some in the market see it as an indicator of the official payrolls report,” said Imre Speizer, a market strategist in Auckland at Westpac Banking Corp. (WBC) “Because it’s got the tapering linked into it, this is going to be one of the most important payrolls numbers we’ve seen in a long time.”
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