NZD down after Oz rates unchanged

JAZIAL CROSSLEY
Last updated 17:23 07/08/2012

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The New Zealand dollar fell against the greenback today after news that the Reserve Bank of Australia was leaving rates unchanged.

The kiwi recently traded at US82.03, down from US82.13c earlier, which was the highest level it had seen since April. On the Trade Weighted Index against major trading partners' currencies it was at 73.70, up from 73.54 earlier.

"The kiwi is currently trading over US82.00c again," HiFX senior currency trader Dan Bell said.

"We have just had the Reserve Bank of Australia's monetary policy statement delivered - it has kept rates unchanged at 3.5 per cent. The comments overall were not a huge departure from their recent statements," he said.

"Overall it was a bit more of an upbeat assessment from the Reserve Bank of Australia, reducing the odds of further rate cuts. That's a key reason that the Australian dollar pushed up.

"Looking elsewhere, in New Zealand the big news this week is going to be the local employment data due out on Thursday. There is an expectation it [unemployment] might have eased to 6.5 per cent."

Unemployment jumped to 6.7 per cent in the March quarter, from 6.4 per cent in the previous quarter.

On the crosses, the kiwi was unchanged against the Australian dollar at A77.54c. It was at 66.19 euro cents, up from 66.12 euro cents earlier, and at 64.20 Japanese yen, down from 64.24 yen earlier.

The kiwi recently traded at 52.61 pence, up from 52.54 pence earlier.

Bell said the kiwi could trade between US81.80c and US82.50c overnight, with a bias towards the topside.

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- © Fairfax NZ News

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