The New Zealand dollar was down against the greenback today as the Reserve Bank of New Zealand revealed current account deficit data that was worse than widely expected at 4.8 per cent of GDP.
The kiwi recently traded at US79.46c, down from US79.75c in the morning. On the Trade Weighted Index against major trading partners' currenices it was at 71.60, down from 71.80.
HiFX senior currency strategist Dan Bell said New Zealand's external debt position continued to be an issue for the New Zealand dollar, sending it down against most major currencies.
"The kiwi had a pretty good rally but then came under some selling pressure on the annual current account deficit numbers this morning. New Zealand's external debt position was seen as negative at this time with the sovereign debt crisis rumbling on in Europe," Bell said.
"Tonight, we will be awaiting an announcement from the US Central Bank at about 4.30am New Zealand time."
On the crosses, the kiwi recently traded at 78.04 Australian cents, down from A78.25c earlier. It was at 62.72 Japanese yen, down from 62.95 yen in the morning. It fell to 62.71 euro cents from 62.85 euro cents earlier. It was at 50.53 pence, down from 50.67 pence earlier.
Bell expected the kiwi to trade between US78.80c and US79.90c overnight.
- © Fairfax NZ News