Kiwi down but expected to lift

JAZIAL CROSSLEY
Last updated 17:31 19/12/2012

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The New Zealand dollar fell against the greenback today after it was announced current account deficit shrank to $2.5 billion for the September quarter, with the annual balance at a deficit of 4.7 per cent of GDP.

The kiwi recently traded at US83.91c, down from US84.15c in the morning. It was at 74.80 on the Trade Weighted Index against major trading partners' currencies, down from 75.20 in the morning. 

HiFX currency trader Alex Hill said the kiwi had seen significant movement today. 

"There was a bit of heavy institutional selling of the kiwi. It looks like the fairly key support level of US83.80c has seen a bit of buying demand.

"The big movers leading in to the day were the kiwi-euro cross, having another great session, but the kiwi is looking a bit soft at the moment," he said.

On the crosses, the kiwi recently traded at 79.72 Australian cents, down from A79.97c earlier. It was at 63.31 euro cents, down from 63.64 euro cents earlier. Against the British pound it was at 51.57, down from 51.81. It was at 70.68 Japanese yen, down from 70.92 yen earlier.

Hill expected the kiwi to trade between US83.50 and US84.50c overnight with a bias towards the upside. 

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- © Fairfax NZ News

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