Kiwi surges on strong GDP result, briefly through 85USc
UPDATED 12.05pm: The New Zealand dollar spiked briefly through 85USc (to 85.04USc according to Reuters data) before settling back to trade around 84.90USc.
UPDATED 10.50am: The New Zealand dollar has hit a new record high after a strong GDP result this morning.
Following Statistics New Zealand's announcement of 0.8% growth in the three months to March, the Kiwi shot up to a new post-float high of 84.81USc.
The New Zealand dollar has soared to a new record high against the greenback, jumping over 84USc after a volatile day's trading.
The Kiwi is trading at 84.04USc according to Reuters, after hitting a post-float high of 84.19USc in earlier trading.
Comments by US Federal Reserve chairman Ben Bernanke signaling a third round of Quantitative Easing sparked a fall in the US dollar against most currencies.
Speculation New Zealand's GDP figures to be announced today will be bigger than expected has been pointed to by analysts as another reason for the New Zealand dollar's rise.
Bancorp Treasury highlighted the volatility of the New Zealand dollar, which rose more than 2c against the US dollar in one day.
"The NZD has been showing its true volatile nature over the last 24 hours. The NZD/USD began yesterday at 0.8160, and rose 225 points to reach a new post float high of 0.8385 last night [before hitting a new high today]. The rise came on the back of China’s strong GDP data, as well as ‘risk-off’ pricing.
"Fed Chairman Bernanke commented last night on the weakness of the US economy and said the Fed would provide additional stimulus if required. The comments relieved some of the market’s worries, supporting the NZD/USD, and the yield on 10-year Treasuries increased 3 basis points to 2.90%."