NZD down ahead of more US data

The New Zealand dollar fell against the greenback after mixed US data as markets await further economic data due out from the US tonight.

US consumer price index data released last night was flat while industrial production rose 0.6 per cent in July.

The kiwi recently traded at US80.62c, down from US80.66c in the morning. On the Trade Weighted Index against major trading partners' currencies it was at 72.80, up from 72.74.

HiFX senior currency strategist Dan Bell said it was a relatively quiet day for the kiwi with trading restricted to the US80.30c-US80.80c range.

"There was not a lot of major news on the local markets to drive things and offshore was also quite a quiet session in what continues to be the northern hemisphere holiday season keeping things quiet," Bell said.

"Markets will be focused on the US economic data and whether there will be any changes to the outlook and monetary policy, whether the Federal Reserve will enter quantitative easing or not. 

"If the data due out tonight is unemployment claims and the manufacturing index."

On the crosses, the kiwi recently traded at 76.92 Australian cents, up from A76.80c. It was at 63.92 Japanese yen, up from 63.63 yen earlier. It was at 65.66 euro cents, unchanged from 8am. It was at 51.45 pence, up marginally from 51.41 pence in the morning.

Bell expected the kiwi to trade between US80.20c and US81.00c overnight, with a bias towards the topside.

- © Fairfax NZ News