NZD up as Aussie cash rate steady

JAZIAL CROSSLEY
Last updated 17:12 06/11/2012

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The New Zealand dollar rose against the greenback today as the Reserve Bank of Australia kept the official cash rate across the Tasman on hold at 3.25 per cent, in line with expectations.

The kiwi recently traded at US82.61c, up from US82.42c earlier. On the Trade Weighted Index against major trading partners' currencies, it was steady at 74.00.

ASB Institutional head of institutional FX sales Tim Kelleher said the New Zealand currency's movements had been limited because of the Australian cash rate staying static.

"There was some selling of the kiwi and buying of the aussie so it rose up slightly on the day but remained weak on that aussie dollar cross. I suspect once the European market comes in we might see the aussie go higher, and that would drag the kiwi higher with it."

On the crosses, the kiwi was at 79.22 Australian cents, down from A79.53c in the morning. It was at 64.55 euro cents, up from 64.47 euro cents earlier. It rose to 51.66 pence from 51.63 pence in the morning. Against the Japanese yen, it was at 66.21 up from 66.16 yen earlier.

Kelleher expected the kiwi to trade between US82.40c and US82.90c overnight with a bias towards the upside.

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- BusinessDay.co.nz

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