The New Zealand dollar traded thinly overnight as sentiment remained fragile due to fears about Ireland's finances and China's monetary policy.The NZ dollar was buying US77.67c at 8am up from US76.92c at 5pm yesterday after earlier moving higher on better
The New Zealand dollar traded thinly overnight as sentiment remained fragile due to fears about Ireland's finances and China's monetary policy.
The NZ dollar was buying US77.67c at 8am up from US76.92c at 5pm yesterday after earlier moving higher on better than expected retails sales data.
However it fell just ahead of 5pm on a sell off in equity markets in Asia.
"Today the NZD should find itself in consolidation mode (and) will remain relatively firm against most currencies awaiting offshore moves in the commodity and equity arenas," ANZ economist Mark Smith said.
One of the biggest items on the local economic agenda this week was yesterday's September quarter retail sales report. Seasonally adjusted total retail sales rose 0.8 percent, or $133 million, in the September quarter, Statistics New Zealand said.
It appeared that consumer spending ahead of an increase in goods and services tax on October 1 may have been more than expected and the strength may reverse in the next quarter, BNZ Markets said.
Meanwhile the US dollar pared gains across the board after data showed a manufacturing gauge in New York fell this month to its lowest level since April 2009, which offset a stronger than expected reading of retail sales.
"The recovery in the dollar had been driven by consistent surprises in US data over the past two weeks and the disappointing Empire State survey reminded traders that the recovery in the US economy is still uneven," Kathy Lien, currency research director at GFT in New York, said.
Against the European currency the NZ dollar was trading at 0.5710 up from 0.5621 yesterday evening.
The NZ dollar rose to 64.36 yen from 63.57 yen at 5pm yesterday and A78.42c from A78.13c yesterday 5pm.
The trade weighted index was at 69.43 up from 68.71 last evening.
