NZ dollar remains sidelined in quiet trade
The New Zealand dollar was sidelined today, while the Australian dollar went on a rollercoaster ride in reaction to employment data.
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The New Zealand dollar was sidelined today, while the Australian dollar went on a rollercoaster ride in reaction to employment data.
Dealers said the NZ dollar lagged overnight, when other currencies rose against a weak US dollar, and then it traded in a range today.
The NZ dollar was at 76.16USc at 5pm from 76.23USc at 8am and 75.92USc at 5pm yesterday. The local currency spent most of the session at 76.00-76.40USc.
"We are sidelined at the moment, and trapped in a range between US75.80c and US76.40c," one dealer said.
The local currency was at 76.57Ac at 5pm, little changed from 76.55Ac at 8am and down from 77.02Ac at 5pm yesterday. It peaked around 77.30Ac at lunchtime yesterday as markets worried about the impact of the Queensland floods on the Australian economy. It blipped higher to A76.87c today when the Australian dollar was weak but then eased.
"The Australian dollar is higher than it was yesterday and the kiwi is basically the same level," the dealer said.
The Australian dollar was at 99.41USc from 98.54USc yesterday. It dropped about half a US cent on news that Australian employment rose by a less than expected 2300 in December. But the jobless rate dropped to 5% and investors focused on that.
Concerns about the impact of the floods in Queensland on the Australian economy are reducing.
In New Zealand, Statistics New Zealand said seasonally adjusted electronic card transactions fell 1.2% in December from November. This was weak and ASB economists said the Reserve Bank may not raise the official cash rate until September.
Dealers said a New Zealand government bond tender today was well bid, which was positive. The tender was large, with $950 million of bonds sold.
The NZ dollar was at €0.5810 from €0.5838 yesterday and at ¥63.20 from ¥63.15 yen yesterday.
The trade weighted index was 68.85 at 5pm from 68.95 at the same time yesterday.
NZPA
Thu, 13 Jan 2011
Thu, 13 Jan 2011
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NZ dollar remains sidelined in quiet trade
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