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Kiwi Caught Up In Post-data Aussie Selling

Contributor:
Fuseworks Media
Fuseworks Media

Wellington, April 4 NZPA - The New Zealand dollar gave up some gains against its trans-Tasman counterpart, caught up in selling after weak retail sales hit the Australian dollar.

By 5pm, the NZ dollar was at A85.82c against the Aussie, recovering from a three-week low of around A85.65c overnight, but below yesterday's A86.20c level.

The kiwi has fallen from A87.70c at the start of the week, weighed down by the New Zealand economy's soft outlook.

Australian consumer spending fell a second consecutive month in February, with a seasonally adjusted 0.1 percent decline in February against a 0.4 percent increase forecast.

Comments by Reserve Bank of Australia governor Glenn Stevens implying interest rates may have peaked also weighed on the Australian currency.

By 5pm, the Aussie was at US91.20c, from US91.38c late yesterday afternoon.

The kiwi also fell against the greenback, to US78.23c by 5pm -- about 10 points above the session low -- compared with yesterday's US78.75c.

The currency fell too against the euro, yen and sterling, declining to 70.01 on the trade weighted index from 70.45.

The US dollar crept up against the yen today, as investor optimism that financial markets may be regaining stability was offset by worries about the US economy before a key payrolls report due later in the day.

Some market players were betting that the jobs data would only support expectations for a Federal Reserve rate cut later this month, though there was a risk that a worse-than-expected result could renew expectations for a big Fed rate cut and knock the dollar.

NZPA WGT Reuters mfc cw

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