The New Zealand dollar may finish the week lower as a modest economic recovery keeps inflation well within the Reserve Bank’s inflation target range.

New Zealand shares followed the global rally after a surprise first-quarter profit for aluminium producer Alcoa and an upbeat view from the Federal Reserve’s regional breakdown of the US economy stoked appetite for riskier assets. 

The kiwi rose after the European Central Bank indicated it may buy Spanish government debt and the Federal Reserve said the US economy maintained growth in all 12 of the central bank’s regions.

An unexpected profit by Alcoa and a positive view of the world's biggest economy from the Federal Reserve have helped global equities rebound.

The kiwi fell in local trading after China unexpectedly reported a trade surplus, damping speculation the People’s Bank of China will loosen monetary policy to support growth.