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Kiwi Settles Lower Ahead Of Us Rate Decision

Contributor:
Fuseworks Media
Fuseworks Media

Wellington, April 30 NZPA - The New Zealand dollar slipped further today as most currencies awaited important US data for direction.

US GDP (gross domestic product) figures are due out overnight, as are the latest interest rate decision by the US Federal Reserve.

At 5pm the New Zealand dollar was at US77.66c, down from US78.22c last night. It also slipped against the yen at 80.70 yen (81.54 yen yesterday) and euro at 0.4981 (0.5000) and languished against the stronger Australian dollar at A83.11c (A83.55c).

ANZ Institutional Bank senior dealer Mark Elliott said trading volumes had been moderate ahead of the US moves, which would probably be "quite defining" for currency markets over the next month or so.

There had been some selling pressure on the kiwi dollar near its lows of US77.26c today, "but it seems to have held up".

Against the Aussie dollar, the kiwi briefly fell through a key support level of A83c.

A break through the previous low of A82.50c in October last year could herald a "significant move" lower, Mr Elliott said.

But all eyes were really on the "Fed" which was expected to make another quarter percent cut but possibly signal an end to its easing cycle.

" Technically the US stock market look vulnerable to another fairly large selloff. Now whether that translates into US dollar weakness or carry trade weakness, it really is impossible to tell at this point," Mr Elliott said.

The trade weighted index was 69.43 from 69.84 at 5pm yesterday.

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