The New Zealand dollar fell against the broadly rising greenback as investors squared up positions a day ahead of a monetary policy announcement by the United States Federal Reserve.Analysts said markets were pricing in at least some form of modest easing
The New Zealand dollar fell against the broadly rising greenback as investors squared up positions a day ahead of a monetary policy announcement by the United States Federal Reserve.
Analysts said markets were pricing in at least some form of modest easing when the Fed meets, with some speculation it could revive a plan to buy Treasury and mortgage debt to give the economy a boost.
By 8am today the kiwi was buying US72.86c from US73.16c at 5pm yesterday.
ANZ bank said the NZ dollar had an extremely quiet drift lower, and was likely to remain in neutral today as the markets waited for the result of the Fed meeting tomorrow morning (NZT).
Recent data showed that overall US payrolls fell by 131,000 in July. Private employment, a better gauge of labour market health, rose a modest 71,000, below forecasts for a gain of 90,000.
By contrast, data suggested the euro zone was in better shape. Euro zone investor morale surged while German exports rose more than forecast.
The NZ dollar was barely changed against the Japanese and European currencies, compared to 5pm, buying 0.5508 euro and 62.58 yen at the local open.
Markets fear Japanese authorities could intervene to weaken the yen so that strength does not derail a fragile, export-led recovery, with Japan's finance minister expressing concern about yen strength.
The kiwi dropped against the Australian dollar to A79.48c at 8am from A79.71c at 5pm, touching a three-month low A79.23c overnight. The trade weighted index fell to 67.11 at 8am from 67.25 at 5pm.
