The New Zealand dollar powered above US75c for the first time in nearly 11 months, as weak data in the United States supported expectations of further easing by the US Federal Reserve.A private-sector report from payrolls processor ADP, which is a precurs
The New Zealand dollar powered above US75c for the first time in nearly 11 months, as weak data in the United States supported expectations of further easing by the US Federal Reserve.
A private-sector report from payrolls processor ADP, which is a precursor to US non-farm payrolls data on Friday (local time), suggested the US labour market remained weak in September, kicking of a slew of US dollar-selling across the board.
By 8am today the kiwi was buying US75.27c -- having peaked around 5am near US75.50c -- after climbing from US74.81c at 5pm yesterday.
ANZ bank said massive purchases of euros by central banks had left the NZ and Australian currencies as the flotsam of markets and they moved accordingly.
Despite plenty of interest in selling the NZ dollar above US75c, the move higher had been inevitable as international currency wars heated up, ANZ said.
It expected the currency wars to intensify in the coming month as the US dollar index fell through key support levels.
"The NZX is likely to move like a cork in washing machine as year end approaches," ANZ said.
The NZ dollar was up to 62.42 yen at 8am from 62.22 at 5pm, but little changed against the European currency at 0.5401 euro.
There was also little change against the Australian dollar, with the kiwi at A77.04c at 8am, while the trade weighted index lifted to 67.05 from 66.90 at 5pm yesterday.
