Index data pushes kiwi down

JAZIAL CROSSLEY
Last updated 17:52 01/06/2012

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The New Zealand dollar was down against the greenback today as the influential purchasing managers' index data from key trading partner China fell to 50.4, below market expectations and a new low for this year.

The kiwi recently traded at US75.12c, down from US75.42c. On the Trade Weighted Index against major trading partners' currencies it fell to 68.90 from 69.06.

HiFX currency trader Alex Hill said the weaker Chinese data was the main thing disappointing the market today.

"In the face of a week that's been relatively quiet compared to what we've seen over the last two weeks, it has really been just a bit of a range trade but this Chinese data has pushed the heads of these currency commodities under water. We look to be testing the range of the recent lows that we've had in the last week or so," Hill said.

"There hasn't been too much news out of Greece and Europe to really spur the market into a decent rally. The markets are on hold a little bit until the results of the Greek election [on June 17] but this Chinese data today has swung the focus back to that part of the world, again making investors aware that it isn't just Europe in trouble at the moment or feeling the pinch."

On the crosses, the kiwi recently traded at 77.56 Australian cents, up from A77.30c in the morning. It fell to 60.83 euro cents from 60.94 euro cents. It was at 48.87 pence, down from 48.90 pence earlier. It fell to 58.91 Japanese yen, from 59.15 yen earlier.

Hill expected the kiwi to traded between US74.50c and US75.50c with a bias towards the downside.

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- BusinessDay.co.nz

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