The New Zealand dollar performed strongly overnight as commodity prices pushed higher and data from the United States was weak, with the kiwi rising to its highest level against the Australian currency in 15 weeks.
The New Zealand dollar performed strongly overnight as commodity prices pushed higher and data from the United States was weak, with the kiwi rising to its highest level against the Australian currency in 15 weeks.
The NZ dollar lifted against the aussie to A75.82c from A75.56c, peaking just under A76c early today. At 8am the kiwi was buying US79.85c, up from US79.20c at 5pm yesterday.
BNZ currency strategist Mike Jones said the NZ dollar had been propelled higher against the aussie after Australian commentator Terry McCrann said overnight Europe's debt crisis would adversely affect Australia.
Until now the weak kiwi against the Australian dollar had held back the NZ dollar's trade weighted index to some extent.
But with the kiwi now having climbed around 2.9 percent against the Australian dollar in May to date, the TWI was closing in on 70 for the first time since June 2008, Mr Jones said.
The soaring TWI had more than offset the Reserve Bank's attempt to ease financial conditions with its 50 basis point rate cut after the Christchurch earthquake in February.
ANZ bank said the catalyst for the rally in the NZ dollar against the greenback had been weak US durable goods orders and stronger commodity prices.
The kiwi had once again pushed above US80c briefly but again failed to break through that key resistance level, ANZ said.
The Greek debt crisis had continued to dominate global price action overnight, yet the euro managed to survive the $US1.40 level after coming under some selling pressure.
Greg Salvaggio, vice president of trading at Tempus Consulting said that Europe was at the beginning of a prolonged sovereign debt crisis that would play out this northern summer.
"Polls suggest 80 percent of Greeks oppose more austerity, so if the government forces the issue, it will fall," which could increase the risk of a debt default.
The NZ dollar rose to 0.5669 at 8am from 0.5639 at 5pm, and was up to 65.45 yen from 64.87. The TWI rose to 69.59 at 8am from 69.21.
