NZ dollar maintains gains on renewed global optimism
The kiwi is at its highest level against the greenback in more than two months.
The kiwi is at its highest level against the greenback in more than two months.
The New Zealand dollar rose to its highest level against the greenback in more than two months as commodity and equity markets rose and fears eased about Egypt's political unrest.
There were so many positive factors for the NZ dollar it was difficult to work out which one was the driver on the day.
The NZ dollar was at 78.16USc at 5pm, up from 77.97USc at 8am and 77.42USc at 5pm yesterday. The main move was on Tuesday night and the currency spent most of today consolidating around 78USc.
There was strong result from the fortnightly Fonterra milk price auction overnight, which showed a further 7.2% surge in milk prices after already strong gains this year. Prices were now up 16% to date this year.
This came after US equities rose to their highest level since June 2008 on strong corporate earnings and on data showing strong manufacturing activity.
The easing in the crisis in Egypt has also allowed investors to focus on positive economic data.
"It was a generally perky night for the NZ dollar and a solid dairy price auction added fuel to the fire," said Mike Jones, currency strategist at BNZ.
The currency continued its perky performance today but there were few new factors to trade on. Investors are waiting for the household labour force survey tomorrow.
Markets have so far largely ignored the powerful Cyclone Yasi headed for Queensland.
The NZ dollar was at 77.14Ac at 5pm, from 77Ac at 8am and 77.36Ac at 5pm yesterday.
On a day in which the euro rose to its highest level in three months the NZ dollar was little changed at €0.5642 from €0.5640 yesterday.
Against the Japanese currency it was ¥63.65 from ¥63.45 yesterday.
The trade weighted index was 68.99 from 68.79 at the same time yesterday.