NZ dollar down on soft US data

JAZIAL CROSSLEY
Last updated 17:29 17/08/2012

Relevant offers

The New Zealand dollar was down against the greenback in a day of quiet trading, following more soft data from the United States. There was no impact from the local producer price index data.

The kiwi recently traded at US80.90c, down from US81.05c. On the Trade Weighted Index against major trading partners' currencies it was at 73.10, up from 72.97.

Bank of New Zealand market strategist Mike Jones said the kiwi had a sleepy session today.

''For the most part it has been shuffling sideways in a familiar range today as we await more exciting events over the next few weeks. We did have New Zealand producer price index data out this morning which was a little perky but the currency more or less shrugged the data off,'' Jones said.

''The kiwi has been riding high on expectations of policy easing in the United States and Europe but it keeps getting disappointed on that front.''

If quantitative easing were to go ahead in the US, it is likely that currency would weaken which would help the kiwi's strength.

On the crosses the kiwi recently traded at 77.25 Australian cents, up from A77.02c. It was at 64.20 Japanese yen, down from 64.28 yen earlier. It fell to 65.53 euro cents from 65.60 euro cents earlier and rose marginally to 51.63 pence from 51.52 pence earlier.

In the next few weeks markets will be looking to a European Central Bank meeting and an address from US Federal Reserve chairman Ben Bernanke.

Jones expected the kiwi to trade up to US81.60 over the weekend.

Ad Feedback

- © Fairfax NZ News

Special offers

Featured Promotions

Sponsored Content