NZD holds gains, TWI at 5yr high
The New Zealand dollar fell slightly against the greenback today, having broken through the US84c mark overnight on news that the US Federal Reserve would commit US$45 billion to buying monthly bonds.
The kiwi recently traded at US84.39c, down from US84.45c in the morning. It was at 75.20 on the Trade Weighted Index (TWI), a five-year high.
"We are seeing five year highs in the TWI and the kiwi itself has held reasonably, up on some of the crosses. Markets will be looking for any guidance from the Reserve Bank tomorrow," ASB Institutional head of institutional FX sales Tim Kelleher said.
On the crosses the kiwi recently traded at 64.50 euro cents, down slightly from 64.53. It was at 52.28 pence, up from 52.25 pence earlier. Against the Japanese yen it was at 70.52, up from 70.27 yen earlier, and was at 79.98 Australian cents, up from 79.85 Australian cents.
Kelleher expected the kiwi to trade between US84.25c and US84.75c overnight, likely to drift sideways.