The New Zealand dollar consolidated today after touching its highest level in a week – and second highest in eight months – against a broadly lower greenback.The US dollar was weakened by a decline in US consumer confidence, increasing expecta
The New Zealand dollar consolidated today after touching its highest level in a week – and second highest in eight months – against a broadly lower greenback.
The US dollar was weakened by a decline in US consumer confidence, increasing expectations the Federal Reserve will print money to buy assets.
The NZ dollar was worth 73.89USc at 5pm from 73.92USc at 8am and 73.46USc at 5pm yesterday. It edged above 74USc for a short time before 7am but spent its domestic session mostly in a range between 73.94USc and 73.80USc.
"It is quiet at the moment with no real fresh news out," said Murray Hindley, chief currency dealer at ANZ. He said Asian equity markets were weak and New Zealand trade data was in line with market expectations.
Statistics New Zealand said exports were up 15%, or $405 million, in August from a year earlier to $3.2 billion, led by higher prices for dairy products.
Imports last month were up 3.6%, or $126 million, to $3.6 billion, leaving a trade deficit in August of $437 million, or 14% of the value of exports. For the year ended August, the annual trade surplus was the highest since March 2002.
The NZ dollar has gained 5.8% since the beginning of September but has not been able to match an 8.5% rise in the Australian dollar, Reuters reported.
The Australian dollar hovered near a two-year high today due to the weak US dollar.
However, the NZ dollar is trading in a narrow range against the Australian dollar and was at 76.33Ac at 5pm from 76.52Ac at the same time yesterday.
It was at €0.5436 from €0.5459 at the same time yesterday.
The NZ dollar was at ¥61.86 at 5pm from ¥61.88 yesterday, while the trade weighted index rose slightly to 66.58 from 66.50.
