Kiwi down on EU nerves

Last updated 18:30 27/06/2012

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The New Zealand dollar was down against the greenback despite talk of stimulus ahead in China, after negative sentiment overnight in Europe.

German chancellor Angela Merkel had commented she was against issuing euro zone common bonds. Markets were on edge to hear the outcome of European Summit meetings later this week.

The kiwi recently traded at US78.98c, down from US79.19c in the morning. It was at 71.70 on the Trade Weighted Index against major trading partners' currencies, down from 71.86 in the morning.

DirectFX currency adviser Sam Coxhead said the kiwi had a day of sideways movement today.

"There was not a lot going on in the Asian session, there is still a lot of talk coming out of Europe and also chit chat out of China that stimulus could be occurring in both July and August," Coxhead said.

"For the most part the kiwi has been treading water ahead of the European Summit on Thursday and Friday."

On the crosses, the kiwi recently traded at 78.46 Australian cents, down from A78.55c earlier. It was at 63.16 euro cents, down from 63.32 euro cents earlier. It was at 62.74 Japanese yen, down from 62.95 yen previously. It was at 50.51 pence, up from 50.59 pence.

Coxhead said the kiwi could trade between US78.50c and US79.50c overnight with a bias towards the downside.

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- © Fairfax NZ News

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