Kiwi up against the greenback

JAZIAL CROSSLEY
Last updated 17:35 06/08/2012

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The New Zealand dollar rose against the greenback today, in a session of light trading and with the Australian market out of the equation due to a public holiday across the tasman.

The kiwi recently traded at US81.88c, up from US81.82c in the morning. On the Trade Weighted Index against major trading partners' currencies it was at 73.40, down from 73.51.

ASB Institutional head of institutional FX sales Tim Kelleher said the kiwi's trading movements had been very quiet today.

The euro hit a new one month high against the greenback, with the United States releasing better than expected employment data on Friday.

"Supposedly [German chancellor Angela] Merkel came out and said on Friday it was not opposed to the European Central Bank buying bonds, which might be one reason why that market was so strong. There is no real data but the market was driven by innuendo out of Europe," Kelleher said.

"There is an article from the Wall Street Journal saying Spain was waiting to see what the European Central Bank does before deciding on a bailout. For the kiwi I think risk is up but there are strong headwinds.'

On the crosses the kiwi recently traded at 77.44 Australian cents, down marginally from A77.47c earlier. It was at 66.04 euro cents, down from 66.07 euro cents in the morning. It rose to 52.40 pence from 52.39 pence earlier. It was at 64.22 Japanese yen, up from 64.16 yen earlier.

Kelleher expected the kiwi to trade between US81.50c and US82.25c overnight.

"It has struggled to get up to US82.75c previously and I would suspect it will struggle to get up there again now." 

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- BusinessDay.co.nz

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