Kiwi stable in quiet trade

RICHARD MEADOWS
Last updated 08:47 14/02/2013

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The New Zealand dollar tracked sideways against the greenback overnight, as a market still suffering the malaise of the Chinese New Year awaits firm direction from upcoming economic data.

The kiwi recently traded at US84.09 cents, little changed from US84.11c at 5pm yesterday, while on the Trade Weighted Index of major trading partners' currencies it rose to 76.20 from 76.10.

ANZ senior dealer Alex Sinton said traders were looking toward offshore data, including fourth quarter provisional GDP numbers from Europe.

On the domestic front, Statistics New Zealand is due to release the Food Price Index for January and Business NZ has the latest Performance of Manufacturing Index.

"The local data probably won't knock it around too much," Sinton said.

"It's still suffering from the malaise of the Chinese New Year, and really looking for direction elsewhere at the moment."

Volatile currency markets had also been bombarded with conflicting interpretations of a series of G7 statements on monetary easing, he said.

Japan was in the spotlight for its competitive devaluation of the yen, but the currency dropped back to its longer-term trajectory as officials reaffirmed that little would be done about it.

"The upshot of G7 is that no-one should unilaterally pursue currency devaluation," Stinton said.

"Everybody's doing it, so nobody's really breaking the rules."

On the crosses the kiwi recently traded at A81.23 cents, down from A81.34 at 5pm yesterday and 78.62 Japanese yen, up from 78.21 yen. It opened at 62.51 Euro cents, down from 62.57 euro cents, and rose to 54.09 pence, from 53.68p.

Sinton said the kiwi had buyers lined up just under the US84c mark and sellers holding out closer to US84.50c.

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- BusinessDay.co.nz

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