Kiwi largely within recent ranges

Tuesday 8th March 2011

The New Zealand dollar largely moved within recent ranges overnight, although briefly dropping to a new 18-1/2-year low against the Australian currency.

By 8am the kiwi was buying US73.64c against the US dollar, down from US73.75c at 5pm yesterday, and after staying within a band between US73.50c and US74c for most of the night.

Against the aussie, the NZ dollar was at A72.89c at 8am, little changed from its 5pm level, although around 4am it did drop under A72.45c.

ANZ bank said the NZ dollar was continuing to trade tentatively ahead of the Reserve Bank's monetary policy statement and official cash rate review on Thursday.

Similar topside levels remained in place, with support levels still threatened.

An initial test of US73.45c yesterday held, and trading after that had been quiet, ANZ said.

Despite giving the appearance of a currency in consolidation mode, the NZ dollar may be hiding further downside potential.

The NZ dollar fell to a six-month low against the Japanese currency last night, around 60.30 yen, rising to 60.55 yen at 8am, similar to its 5pm level.

The kiwi was also little changed at 0.5275 euro, while the trade weighted index slipped to 64.96 at 8am from 65.01 at 8am.

The euro fell from the day's high and traded little changed against the US dollar as expectations of a euro zone interest rate hike next month faded.

Investors may have taken a second look at Moody's slashing Greece's debt rating by three notches. The ratings agency also kept Greek debt on review for a further possible downgrade.

NZPA

Comments from our readers

No comments yet