NZ down after weak Chinese exports

Last updated 18:25 10/08/2012

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The New Zealand dollar was down against the greenback today, continuing the downward trend seen in the overnight session.

The currency was negative after data was released showing a weak 1 per cent rise in Chinese exports, below expectations.

The kiwi recently traded at US80.92c, down from US81.15c. On the Trade Weighted Index of major trading partners' currencies it was down to 73.00 from 73.10 earlier.

ASB Institutional head of institutional FX sales Tim Kelleher expected the kiwi to weaken further over the weekend.

"The kiwi dollar was weaker, although not as weak as the Australian dollar. It's lower on the day but we've had some poor Chinese data which has knocked both currencies - it knocked the aussie harder," Kelleher said.

"Also we had some more talk from the Reserve Bank of Australian about the high rate of the Australian dollar effecting the economy so it went lower. Also, equities off shore were all negative."

On the crosses the kiwi recently traded at 76.88 Australian cents, down from A76.80c earlier. It was down to 51.79 pence from 51.89 pence in the morning. Against the Japanese yen it was at 63.61, down from 63.79 yen earlier. It was at 65.82 euro cents, down from 65.98 euro cents earlier.

Kelleher expected the kiwi to trade between US80.50c and US81.25c overnight, with a bias towards the downside.

"The aussie and the kiwi were both quite stretched and had every opportunity to go higher this week but haven't so I imagine the kiwi will go downwards."

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- © Fairfax NZ News

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