The New Zealand dollar received a boost today after softer-than-expected words from Australia's central bank put the timing of the next rate rise across the Tasman in doubt.An optimistic Reserve Bank of Australia met market expectations of further rate ri
The New Zealand dollar received a boost today after softer-than-expected words from Australia's central bank put the timing of the next rate rise across the Tasman in doubt.
An optimistic Reserve Bank of Australia met market expectations of further rate rises this year from the current 4 percent in comments released today, but doubt emerged about a rise in April as some had expected.
By 5pm, the kiwi had risen to A76.97c against the Australian dollar, from A76.79c late yesterday afternoon. Against the US dollar, the kiwi was at US70.44c from yesterday's US70.15c.
"It's all about aussie-kiwi today," said Westpac currency strategist Imre Speizer.
"The world was long-aussie, short-kiwi for most of this year based on the divergent economic paths and monetary policy. That sheer weight of positioning needed a catalyst to see some unwind, and we got that catalyst today in the RBA minutes."
With the RBA comments less hawkish than some expected, the aussie was sold and kiwi bought, which pushed the kiwi up against other currencies as well, he said.
The kiwi was in a range of US69.90c-US70.80c, with little in the way of domestic news expected until GDP figures next week.
In the wider market, investors were waiting for the interest rate decision by the US Federal Reserve after a meeting today, expected to be no change.
The yen gained some ground as the euro was held up by a lack of progress on an aid package for debt-laden Greece.
