The New Zealand dollar pushed up through US73c in what was expected to be a quiet start to the week ahead of Thursday's Reserve Bank of New Zealand (RBNZ) monetary policy statement.The NZ dollar was trading at US73.17c at 8am, up from US72.46c at 5pm on F
The New Zealand dollar pushed up through US73c in what was expected to be a quiet start to the week ahead of Thursday's Reserve Bank of New Zealand (RBNZ) monetary policy statement.
The NZ dollar was trading at US73.17c at 8am, up from US72.46c at 5pm on Friday.
Westpac New Zealand market strategist Imre Speizer said in a market brief this morning that the New Zealand dollar had major support at US72.60c and could advance to US73.50c today.
US equities firmed on Friday from the Asian session onwards, although there was little news to guide the market, he said. The overall impression was US double-dip concerns had receded, although a strong US wholesale inventory report may have added fuel to the rally at the New York open.
ANZ National Bank economist Mark Smith said in the bank's morning brief it may well be a long week for currency traders locally as they await the RBNZ monetary policy statement and official cash rate (OCR) review on Thursday.
"No change is expected to the OCR. However, expect the tone of statement to be unusually subdued in light of the situation in Christchurch and this may see another reversal for the NZD from recent highs," he said.
The brighter economic picture in Australia should ensure the cross rate with the kiwi remained within the A78c region today. Only a large political dustup would provide a temporary spike higher for this cross which would be limited to A79.26c, he said.
The kiwi was at A78.72c at 8am, up from A78.58c at 5pm Friday and also gained against the yen to 61.73 from 60.86 and euro to 0.5748 from 0.5714.
The trade weighted index rose to 67.88 at 8am from 67.41 at 5pm Friday.
