The New Zealand dollar was up against the greenback yesterday, led by strength in the Australian dollar after the Reserve Bank of Australia announced it would leave its key interest rate unchanged.
The kiwi recently traded at US80.40c, up from US80.38c earlier. It was at 72.50 on the Trade Weighted Index of major trading partners' currencies, down slightly from 72.52 earlier.
Westpac Banking market strategist Imre Speizer said the kiwi rose a bit higher on the day.
"The kiwi had a little bit of a nudge higher after lunch on stronger than expected Australian building approval numbers [up 27.3 per cent in May] and also the Reserve Bank of Australia keeping rates on hold as expected. There was really not a strong flavour in their statement as a guide for their August meeting although we think they will make a cut," Speizer said.
"The New Zealand calendar is fairly dull this week but if there are any significant moves at the Fonterra auction tonight that could have an impact on the kiwi overnight."
On the crosses the kiwi was at 78.38 Australian cents, down from A78.52c earlier. It rose to 64.07 Japanese yen, from 63.92 yen earlier. The New Zealand dollar was down to 63.82 euro cents, from 63.86 euro cents in the morning. It was at 51.22 pence, up from 51.20 pence earlier.
Speizer expected the kiwi to trade between US80.10c and US80.60c overnight, with a bias towards the downside.
- © Fairfax NZ News