Kiwi back above US79c, gains on weak aussie

Thursday 12th May 2011

The New Zealand dollar rose back above US79c today as the Australian dollar took a hit from weaker than expected employment data.

The NZ dollar has also risen to an 11-week high against the euro, which was driven broadly lower by renewed worries about Greek debt and another sell-off in the commodities market.

The NZ dollar was at US79.12c at 5pm, up from US78.83c at 8am but down from US79.50c at 5pm yesterday. It had weakened overnight when the US dollar strengthened.

The NZ dollar was at 0.5563 euro at 5pm compared to 0.5523 at the same time yesterday.

The euro has dropped to a three-week low against the US dollar, and its drop led to a stampede for the safe haven US dollar.

Speculation over whether Greece will receive more bailout funding kept risk appetite volatile as investors continued to price in a high probability that the country will eventually need to restructure its debt.

The Australian dollar skidded a full US cent today when news of a big decline in full-time jobs prompted investors to lower the risk of a near-term interest rate hike.

Australian employment unexpectedly fell 22,100 in April when it had been expected to rise, while the jobless rate held steady at 4.9%.

The Aussie dollar was at US$1.0640 at 5pm, down from $US1.0852 at the same time yesterday.

The NZ dollar rose to A74.35c at 5pm from A73.69c at 8am and A73.19c at 5pm yesterday.

It was at 64.21 yen from 64.24 yen at the same time yesterday.

The trade weighted index was 68.51 at 5pm from 68.29 yesterday.

NZPA

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