The New Zealand dollar looked to be in retreat when currency markets opened for the week, after failing to get to the US80c level against the greenback in last week's final session.In a volatile run, the kiwi fell to around US78.85c by midnight Friday, th
The New Zealand dollar looked to be in retreat when currency markets opened for the week, after failing to get to the US80c level against the greenback in last week's final session.
In a volatile run, the kiwi fell to around US78.85c by midnight Friday, then climbed rapidly to peak on Saturday morning close to the 30-month high US79.75c level that was reached early Friday.
The NZ dollar was around US79.65c by 10am on Saturday, but at 8am today was down to US79.17c, below the US79.27c at 5pm on Friday.
ANZ bank said it expected a corrective move lower for the NZ dollar as profit taking and an absence of buyers left it to fend for itself.
Technically it should retrace back towards the US77c area but not all in one day, ANZ said.
Despite closing an active week reasonably strongly, the NZ dollar had been unable to break into the US80c territory. The weight of a poorly performing euro held it back.
The NZ dollar was technically over-extended and in "dire" need of a correction back towards the US77c zone, ANZ said.
The US dollar soared in the overnight Friday session after data showed employers in the United States added 151,000 jobs in October, blowing past expectations of a 60,000 rise and marking the fastest pace of hiring since April.
The report came two days after the Federal Reserve committed to inject $US600 billion to boost the flagging US recovery and left some investors open to the possibility the greenback may have carved a bottom against the euro and yen, despite the prospect of more monetary easing.
ANZ also said the kiwi should also head back towards the A77c zone against the Australian dollar, having failed to break past resistance at A78.50c.
By 8am the NZ dollar was at A77.90c from around A78.35c at 10am on Saturday.
The kiwi was also falling against other currencies, dropping to 64.42 yen at 8am today after reaching a 4-1/2-month high above 64.80 yen around 9am Saturday. It remained above the 64.06 yen at 5pm on Friday.
The NZ dollar was down to 0.5647 euro at 8am today after peaking at its highest level in nearly two months around 0.5680 on Saturday, but was still well up on its 0.5582 at 5pm on Friday . The trade weighted index was 69.54 at 8am today from 69.35 at 5pm on Friday.
