NZD up after RBA minutes

JAZIAL CROSSLEY
Last updated 17:49 21/08/2012

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Currencies

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The New Zealand dollar rose against the greenback today although trading was muted as markets anticipate minutes due out early tomorrow morning from the Federal Open Market Committee meeting.

The kiwi recently traded at US81.08c, up from US80.85c in the morning. On the Trade Weighted Index against major trading partners' currencies it was at 73.10, up from 72.98.

HiFX currency trader Alex Hill said trading of the kiwi was quiet today.

"If you look at the volatility index we're seeing that at the lowest levels since June 2007 which gives some indication markets across the board are having a very quiet patch waiting for the next breakout move," Hill said.

Minutes from the Reserve Bank of Australia's August 7 meeting revealed today that it was holding interest rate at 3.5 per cent because of confidence in domestic growth.

"We saw the aussie dollar strengthen a bit and the kiwi slightly with it, around 20 basis points, at that. When we see markets constrained in a tight range for such a period of time it does threaten an aggressive breakout when we do see a move."

Hill expected the kiwi to trade between a low of US80.50c and a high of US81.50c overnight.

 

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- © Fairfax NZ News

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