Kiwi kept under US81.80c

Tuesday 7th June 2011

The New Zealand dollar dipped against the greenback after data showing a sharp slowdown in job creation in the United States, but then rebounded although it has since been unable to push above US81.80c.

At 8am today the kiwi was buying US81.33c, having dropped when the US jobs data came out to under US80.80c early on Saturday, its lowest level in about a week.

ANZ Bank said the bounce back in the kiwi following its fall on the US nonfarm payrolls figures happened as broad based US dollar weakness took effect. Holiday trading had seen the NZ dollar kept to tight ranges yesterday.

The kiwi fell to its lowest level against the Australian dollar in more than a week, bottoming below A75.80c yesterday evening, then firming slightly to A76c at 8am today.

ANZ said the NZ dollar was finding support against the aussie after a gradual selloff in Friday's session when the kiwi suffered losses after its extraordinary run during the previous two weeks.

The NZ dollar fell to a fortnight low around 0.5560 euro yesterday evening, recovering slightly to 0.5584 euro at 8am today. It was down to 65.17 yen from 65.77 at 5pm on Friday, while the trade weighted index fell to 69.74 from 65.77.

The euro slid broadly overnight after two days of gains, pressured by a comment from a German official saying a second Greek bailout was not yet certain, although belief that Greece will be able to avert default on its massive debt should limit the currency's losses.

Policymakers had inched toward a new bailout package for Greece that German media said could exceed 100 billion euros. That had helped push the euro to a one-month high against the US dollar.

NZPA

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