The New Zealand dollar weakened as the US dollar was buoyed by stronger-than-expected US housing and consumer confidence data.
The kiwi slipped to 86.82 US cents at 8am in Wellington, from 87.19 cents at 5pm yesterday. The trade-weighted index dropped to 80.82 from 81.08 yesterday.
Investor optimism increased about a recovery in the world's largest economy after a report showed new home sales in the US surged 18.6 percent in May, the largest monthly gain since January 1992 and ahead of expectations for a 1.4 percent rise. A separate report showed US consumer confidence rose to 85.2 in June, ahead of expectations of 83.5 and up from 82.2 in May.
"The New Zealand dollar lost ground amid broader US dollar strength overnight," Bank of New Zealand currency strategist Raiko Shareef said in a note. "The improvement in US data, accompanied by an increasing debate on whether the Fed is being complacent on inflation risks, is perhaps taking some shine off high-yielding currencies such as the Australian dollar and New Zealand dollar."
No data is scheduled for release in New Zealand today, suggesting the kiwi will trade between 86.80 US cents and 87.30 cents, Shareef said.
Tonight, traders will be eyeing US data on durable goods orders and first quarter GDP, which is expected to be revised lower.
The New Zealand dollar advanced to 92.60 Australian cents from 92.50 cents yesterday. Reserve Bank of Australia deputy governor Philip Lowe is speaking as part of a panel in Melbourne today on global challenges for the G20 group of finance ministers and central bankers from 20 major economies.
The kiwi weakened to 63.81 euro cents from 64.14 cents even after the IFP German business confidence report fell to its lowest level this year.
The local currency slipped to 51.11 British pence from 51.22 pence. Bank of England governor Mark Carney and other senior bank officials told the UK parliament's treasury select committee that the UK economy had spare capacity that needed to be used up before interest rates rose.
The New Zealand dollar edged lower to 88.47 yen from 88.88 yen yesterday.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- Genius move: Live-stream file-sharing chaos will play into Dotcom’s hands
- Blue Bubble whistleblower denied information by court
- Ireland supports Apple, challenges EU order to recoup €13b in 'illegal' tax benefits
- Meridian eyes building new generation, expects Tiwai stays
- Editor’s Insight: Migrant scaremongering will damage economy in long run
Most listened to
- In Editor's Insight, Nevil Gibson looks at Phil Goff, who at a forum in Takapuna spoke of the need to reduce population
- Meridian CEO Mark Binns on the Tiwai smelter and generation options
- No chief of staff leaves one year before an election, says Matthew Hooton
- 'Grumpy as hell' Bill Bennett says he'll use a VPN to connect to Chelsea's club channel
- NZForex's Alex Hill says the market will be paying more attention to data, than comments from officials