NZ up marginally after weak night

JAZIAL CROSSLEY
Last updated 18:44 15/11/2012

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The New Zealand dollar rose slightly against the greenback today after a poor night's trading.

It had been dragged down as the US dollar was weaker after poor sales figures and a focus on budget discussions.

The kiwi recently traded at US81.19c, up from US81.11c in the morning. It was at 72.70 on the Trade Weighted Index, down from 72.75 in the morning.

ASB chief economist Nick Tuffley said the kiwi had a quiet day of trading.

"The main activity did happen overnight so we had the follow on effects from weak retail sales in the US yesterday then last night markets did seem to be quite focused on Gaza Strip related violence [as Israel launched its most aggressive attack in four years]," Tuffley said.

"That affected equity markets which did drag the New Zealand dollar down last night and it has really only risen a fraction higher since. The 200-day moving average for the currency is at US80.76c."

On the crosses, the kiwi was at 78.15 Australian cents, up from A78.04c in the morning. It rose to 63.71 euro cents from 63.61 euro cents earlier. Against the British pound, the kiwi recently traded at 51.21 pence, up from 51.14 pence earlier. It rose to 65.18 Japanese yen from 65.03 yen earlier.

Overnight, markets would be looking to euro zone GDP figures. Tuffley said a small decline of 0.1 per cent was expected for the third quarter, following 0.2 per cent in the second quarter.

"We have not seen many signs of a turn around there as yet so the expectation is yet another quarter of contraction. Overnight we also have one of the US Federal Reserve presidents speaking which could put some focus on US inflation and some regional data for New York and Philadelphia."

The kiwi was expected to trade between US80.60c and US81.60c overnight.

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- © Fairfax NZ News

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