Kiwi retraces earlier gains on better European news
Optimism after French industrial production did not come off as much as traders had expected and the European Commission makes progress towards a banking union.
The New Zealand dollar retraced earlier gains against the euro and pound on better economic data from Europe.
The kiwi fell to 60.47 euro cents from 61.43 cents at the 5pm market close in Wellington yesterday and slid to 52.20 British pence from 52.75 pence yesterday. The local currency weakened to 77.95 US cents from 78.51 cents yesterday.
The New Zealand dollar, which had reached a five-week high against the euro and pound yesterday, weakened overnight on European optimism after French industrial production did not come off as much as traders had expected and the European Commission made progress towards a banking union.
"That was just enough to take back the gains the kiwi had made against the euro and sterling, and that drove it against the US dollar," says Sam Tuck, senior manager FX at ANZ New Zealand.
The local currency spiked against the greenback immediately after the Federal Reserve released the minutes of its last meeting overnight, but then fell back as traders realized it provided no new information, he says.
Traders are awaiting a speech today by Fed chairman Ben Bernanke for indications on when the US central bank may start tapering its $US85 billion a month asset purchase programme.
The kiwi inched up to 85.54 Australian cents from 85.49 cents yesterday and slid to 78.06 yen from 79 yen yesterday. The trade-weighted index slid to 77.95 from 78.51.
(BusinessDesk)
Tina Morrison
Wed, 11 Jul 2018
Wed, 11 Jul 2018
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Kiwi retraces earlier gains on better European news
30723