The New Zealand dollar managed to hang on to gains made on domestic economic news yesterday, tending to move around the US70c level overnight.The NZ dollar rose in late morning trade yesterday after news that manufacturing sales volumes increased by a str
The New Zealand dollar managed to hang on to gains made on domestic economic news yesterday, tending to move around the US70c level overnight.
The NZ dollar rose in late morning trade yesterday after news that manufacturing sales volumes increased by a stronger-than-expected 3.1 percent in the December quarter, while residential building work rose 7.4 percent.
The kiwi peaked at a two-week high against the greenback around US70.35c about 3.30am, and by 8am was buying US70.03c, little changed from its 5pm level.
BNZ strategist Mike Jones said the NZ dollar was the strongest performing currency during the 24 hours to 8am.
Yesterday's GDP indicators were a clear reminder of the New Zealand economic turnaround believed to be brewing, he said.
Overnight, currency markets struggled for direction. Easing fears about the fiscal health of European sovereigns kept investors' risk appetite humming.
Most notably, the head of the IMF said Greece's problems were unlikely to spread to the rest of Europe, which helped European sovereign credit spreads narrow further and risk-sensitive currencies such as the NZ dollar extend their gains, Mr Jones said.
The Australian dollar found fleeting support against the greenback from Royal Dutch Shell's $A3.3 billion offer for Australia's Arrow Energy, which saw the kiwi briefly flirt with its highs around US70.30c.
The NZ dollar also reached a fortnight high against the Japanese currency, peaking around 63.55 yen, before easing to 63.28 yen by the local open, up from 63.20 yen at 5pm.
The kiwi rose to 0.5136 euro at the local open, from 0.5110 at 5pm, and was up to A76.94c from A76.80c at the local close. The trade weighted index was up to 64.77 at 8am from 64.60 at 5pm.
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