Kiwi seen taking a breather
The New Zealand dollar is likely to take a breather today before pushing up to challenge key resistance levels later in the week.
The kiwi recently traded at US83.11c, and was at 74.40 on the Trade Weighted Index against major trading partners' currencies.
Westpac market strategist Imre Speizer said the kiwi had firmed up on Friday off the back of a fairly strong United States payroll report, but looked to be opening weaker this morning.
Weekend news that Italian prime minister Mario Monti had resigned as his government disintegrates was tempered by a batch of “moderately positive” economic data out of China.
“It remains to be seen how much weight the kiwi gets from each of those things,” said Speizer.
He saw the kiwi temporarily weakening to US82.50c today, but picking up the pace over the week ahead.
“I can’t see it breaking above US83.50c today - I think that’s a very strong resistance area for the currency,” he said. “It’s had a good run up since the middle of November, and it just needs to take a breather.”
On the crosses, the kiwi recently traded at 79.18 Australian cents, 64.48 euro cents, 51.83 pence, and 68.44 Japanese yen.