Dollar hovers above 83USc
Dollar stable after strong performance yesterday.
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The New Zealand dollar is trading above 83USc in a narrow band, a big change from its volatility earlier in the week.
The dollar is currently trading at 83.11USc, just above today’s low of 83.09c, while today’s high was 83.26USc.
This stability follows a strong performance yesterday, when the dollar was the best performing currency, rising from about 82USc to its current level.
"Over the past 24 hours we have noted decent demand from Asian sovereign names and local exporters," BNZ's daily currency report says.
Further supporting the move higher in the New Zealand and Australian dollars over the past 24 hours has been a strengthening Chinese Yuan, the report says.
“While not gaining much attention yesterday, data released in NZ was encouraging. At the very least the data suggests the NZ economy has a decent amount of momentum to carry it through some short term nervousness in world financial markets.
“The NZ business PMI dropped 1.1pts to 53.2 for July. Despite the drop, the outturn still represents another solid level of expansion.
“With no data out in either NZ or Australia today, expect NZD/USD to takes its cues from offshore. Initial support is seen around 0.8240USc and resistance around 0.8380USc.”
Niko Kloeten
Fri, 12 Aug 2011
Fri, 12 Aug 2011
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Dollar hovers above 83USc
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