Kiwi up against aussie on disappointing GDP

JAZIAL CROSSLEY
Last updated 17:39 05/09/2012

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The New Zealand dollar rose against the aussie today as the Australian dollar lost its footing against the greenback.

The aussie plummeted to a two-month low against the US dollar on news Australian GDP rose only 0.6 per cent in the June quarter. This undercut the 1.4 per cent growth in gross domestic product Australia had in the first three months of this year.

The kiwi recently traded at 77.87 Australian cents, up from A77.59. The kiwi was unchanged against the greenback at US79.41c.

On the Trade Weighted Index against major trading partners' currencies, the kiwi was at 71.60, up from 71.50 in the morning.

HiFX currency trader Alex Hill said the kiwi fell lower and stuttered around the US79.50c mark during the day.

"It got dragged a touch lower by GDP in Australia being slightly weaker than expected. The Aussie fell under the key US1.02c level at US1.019c. It hasn't been down here since July," Hill said.

"The market is now waiting for the European Central Bank meeting on Thursday and US employment numbers due out Friday night. Tomorrow, Australian employment figures will be one to watch."

On the crosses, the kiwi recently traded at 63.36 euro cents, up from 63.18 euro cents earlier. It was at 62.33 Japanese yen, up from 62.27 yen earlier. It was at 50.07 pence, up from 49.99 pence in the morning.

Hill expected the kiwi to trade between US79.80c and US79.00c overnight, with a bias towards the down side.

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- © Fairfax NZ News

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