NZ dollar edges up in quiet trading leading into Christmas holiday season

Tuesday 24th December 2013

The New Zealand dollar advanced in subdued trading heading into the quiet Christmas holiday period.

The kiwi edged up to 82.06 US cents at 8am in Wellington, from 81.93 cents at 5pm yesterday even after reports showing US consumer spending and consumer sentiment at five month highs. The trade-weighted index strengthened to 77.50 from 77.43 yesterday.

The New Zealand dollar was little changed against most of the major currencies overnight as traders vacate their desks for the Christmas holiday break. The kiwi traded in a narrow range of just 29 basis points against the greenback overnight and is unlikely to be any more active today with no major news or data scheduled.

"NZD was very quiet," Mark Smith, senior economist at ANZ Bank New Zealand, said in a note. "We suspect markets will trade sideways today.

"Despite the Richmond Fed December survey, New Home sales and Durable goods orders (due in the US) tonight we do not expect much market reaction."

ANZ's Smith said the kiwi will probably trade between 81.80 US cents and 82.40 cents today.

The New Zealand dollar was little changed at 91.85 Australian cents from 91.81 yesterday after advancing 15 percent this year as a strengthening local economy contrasts with a slowdown in Australia, boosting the lure of local assets.

The kiwi was little changed at 59.92 euro cents from 59.90 cents yesterday and at 50.19 British pence from 50.13 pence. The local currency advanced to 85.37 yen from 85.25 yen yesterday ahead of the Bank of Japan's monthly report tonight.

BusinessDesk.co.nz

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