NZD down but jumps on Obama re-election

RICHARD MEADOWS
Last updated 18:08 07/11/2012

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Currencies

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The New Zealand dollar fell against the greenback today as markets concentrated on the US election. As news broke that President Barack Obama had been projected to be re-elected, the kiwi saw a spike.

The kiwi recently traded at US82.59c at 5pm, down from US82.81c in the morning. After American news networks began to call that president Obama had been re-elected, it shot up to US82.74c.

It was at 74.00 on the Trade Weighted Index against major trading partners' currencies.

HiFX senior currency strategist Alex Hill said the kiwi had drifted lower today.

"It had a good pick up yesterday and was carried a bit higher by the Australian dollar which was given a shot in the arm after the Reserve Bank across the Tasman yesterday didn't cut rates," Hill said.

"It was a good night for commodities and obviously there have been a lot of eyes on what's going in the States. There will be a bit of volatility coming into the US election result."

On the crosses the kiwi was at 79.11 Australian cents, down from A79.33c earlier. It fell to 64.34 euro cents from from 64.61 euro cents earlier. It was at 65.97 Japanese yen, up from 66.57 yen earlier. The kiwi was at 51.57 pence, down from 51.76 pence earlier.

Hill expected the kiwi to trade between US81.80c and US82.80c overnight.

Locally there will be a focus on employment data tomorrow, and overnight markets will be looking at European retail sales.

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- BusinessDay.co.nz

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