The New Zealand dollar rose against the greenback today after US Federal Reserve chairman Ben Bernanke did not make any comments about economic stimulus at the two-day Federal Open Market Committee meeting in New York.
A lift in retail sales data according to the NAB index in Australia, with online sales up 2 points in June, helped lift the currency across the Tasman with a positive flow-on effect for the kiwi.
The kiwi recently traded at US80.91c, up from US80.81c in the morning. On the Trade Weighted Index against major trading partners' currencies it was at 73.00, down slightly from 73.20.
HiFX currency trader Alex Hill said the the New Zealand dollar had a quiet day after its eventful morning.
"There was a bit of US dollar strength after a lack of quantitative easing mention. The New Zealand dollar has settled back in under the US81.00c mark," Hill said.
"The kiwi picked up again and followed the aussie dollar after better than expected retail sales data in Australia."
Overnight markets will be looking to the European Central bank which is due to make an interest rate announcement.
"A rate cut has been priced in to the weakness in the euro. There is a risk that if [they] don't cut rates it may cause strength for the euro. That announcement is certainly going to be the big one tonight."
On the crosses, the kiwi recently traded at 77.15 Australian cents, down from A77.23c earlier. It was at 66.04 euro cents, down slightly from the fresh high of 66.06 euro cents it reached in the morning.
The currency was at 52.05 pence, up from 52 pence previously, and was at 63.49 Japanese yen, up from 63.47 yen earlier.
Hill expected the kiwi to trade between US80.60c and US81.40c overnight, with a bias towards the topside.
- © Fairfax NZ News