Kiwi dollar slips against greenback

RICHARD MEADOWS
Last updated 09:04 29/01/2013

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The New Zealand dollar fell against the greenback overnight, as traders with long-term speculative positions launched further bouts of profit-taking.

The kiwi recently traded at US83.16 cents, down from US83.58c at 5pm yesterday, while on the Trade Weighted Index of major trading partners' currencies it eased to 75.30 from 75.32. 

Markets were mixed overnight, but there was a general positive trend driven by strong US data and news that ratings house Fitch had maintained the United States' AAA credit rating.

However, the risk-linked kiwi dollar slipped by almost half a cent and the Australian dollar also fell.

"It is the extreme long speculative positioning in the kiwi which is responsible for bouts of profit-taking over the last week or so, even in the face of a better global environment," said Westpac market strategist Imre Speizer.

"That's really the only explanation I could offer for both of those currencies dropping overnight."

Despite the blip, the kiwi is still a full cent away from disrupting the long-term positive trend that has held since July last year.

"As long as US82.15c holds, that's a big line in the sand for us," said Speizer.

On the crosses, the kiwi recently traded at 79.88 Australian cents, down from 80.19  at 5pm yesterday, and fell to 75.5 yen from 76.12 yen earlier. The kiwi dropped to 61.83 euro cents from 62.11 euro cents, and fell marginally to 53.01 pence from 53.04 pence.

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- BusinessDay.co.nz

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