By Tina Morrison
Sept. 2 (BusinessDesk) - The New Zealand dollar may be volatile ahead of a key US jobs report at the end of the week, preceded by a slew of Federal Reserve speeches and major central bank meetings to decide future policy.
The local currency may trade between 76 US cents and 80.50 cents this week, according to a BusinessDesk survey of 10 traders and strategists. Five expect the currency to advance, three expect it to decline and two say it will likely remain unchanged.
Investors will be looking ahead to US non-farm payrolls on Friday, a key piece of economic data that the Federal Reserve has been using to gauge strength in the world's largest economy. A positive jobs number will likely be enough to convince the Fed that a US economic revival is underway, allowing it to taper its US$85 billion a month bond buying programme at its next meeting this month.
"This is regarded as the last hurdle ahead of a potential tapering by the Fed in September so expectations and anticipation around payrolls are even bigger than usual," said Bank of New Zealand currency strategist Mike Jones. "If we saw something around what markets expect, that would lock in a September taper, but that's an outcome that is more or less already priced into the market, so it's not immediately clear that that would be the US dollar supportive result that some expect it to be.