Kiwi holds ground ahead of interest rate announcements

Wednesday 26th January 2011

The New Zealand dollar was little changed today with a holiday in Australia reducing trading in this part of the world and major interest rate announcements due tomorrow.

The NZ dollar was at US76.66c at 5pm from US76.58c at 8am and US76.49c at 5pm yesterday.

It rose slightly in early morning trading when a late flurrying of buying erased earlier losses on Wall Street. This improved the appetite for risk.

But event risk remains with the Federal Reserve's open market committee due to make a statement at 8.15am New Zealand time tomorrow and the Reserve Bank of New Zealand due to pronounce on the official cash rate at 9am.

Dealers said it would be a double whammy for the market though the New Zealand central bank is expected to keep its rate unchanged at 3%.

The NZ dollar held its ground against a range of currencies today and against the Australian was at A76.90c at 5pm from A76.93c at the same time yesterday. It was at 0.5603 euro from 0.5602 euro yesterday and at 62.92 yen from 63.10 yen yesterday.

BNZ currency strategist Mike Jones said the "shockingly weak" British gross domestic product figures yesterday had reignited global growth concerns.

The trade weighted index was slightly higher at 68.33 from 68.20.

NZPA

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