NZ dollar little changed amid lack of economic data to inspire movement

Monday 24th February 2014

The New Zealand dollar was little changed as no new data surprised currency markets over the weekend.

The kiwi was almost unchanged at 82.80 US cents at 8am in Wellington from 82.79 cents at the New York close and 83.03 cents at 5pm in Wellington on Friday. The trade-weighted index slipped to 77.84 from 78.02 on Friday.

Traders said no controversy emerged from the meeting of finance ministers and central bankers from the Group of 20 leading economies meeting in Sydney over the weekend. Finance Minister Bill English was quoted by Reuters as saying the resilience of the New Zealand dollar is a "puzzle" and while its strength has been a significant headwind for the country's export sector, it has also helped improve competitiveness of business.

"There was no exciting data over the weekend, particularly from the US," said Bancorp Treasury Services senior advisor Peter Cavanaugh. "The markets are waiting for a reason to do something and at the moment they haven't got anything."

Cavanaugh said he expects the kiwi to trade in narrow ranges today until new information emerges to provide direction.

"We are just in the doldrums, waiting for the wind to pick up in whatever direction it does," he said.

In New Zealand today, credit card billings for January will be released by the Reserve Bank at 3pm.

Tonight, traders will be eyeing Germany's IFO survey of business for February and the final reading of Eurozone inflation for January.

The New Zealand dollar slipped to 92.24 Australian cents from 92.37 cents on Friday, weakened to 60.29 euro cents from 60.53 cents, was little changed at 49.81 British pence from 49.87 pence and dropped to 84.84 yen from 85.10 yen.

BusinessDesk.co.nz

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