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NZ Dollar At Three-week Low Vs Aussie As NZ Economy Falters

Fuseworks Media
Fuseworks Media

Wellington, April 4 NZPA - The New Zealand dollar fell to a three-week low against its trans-Tasman counterpart, with the kiwi continuing to be hit by this country's deteriorating economic outlook.

By 8am today the NZ dollar was at A85.78c against the aussie, having dropped to around A85.65c earlier from A86.20c at 5pm yesterday.

At the start of the week the kiwi was buying A87.70c.

The kiwi also eased against the Japanese currency, to 80.52 yen at today's local open from 80.71, even though it did touch a two-week high around 81.35 late yesterday evening.

Against the greenback, the kiwi was barely changed, opening locally at US78.68c from US78.75c at the local close.

The NZ dollar declined against the euro from 0.5034 to 0.5018, while the trade weighted index was down to 70.24 at 8am from 70.45.

Bank of New Zealand currency strategist Danica Hampton said the kiwi climbed off lows against the greenback overnight as US equities firmed through the second half of the night.

In the bigger picture the New Zealand economy was far from a picture of health and the deteriorating local economic outlook should see the kiwi underperform, particularly against the aussie and the euro.

Global currency trading was volatile overnight, with the US dollar swinging between gains and losses against the yen, as investors remained focused on tonight's (NZT) United States non-farm payrolls report for March.

Overnight data showing the US service sector shrank less than expected in March was positive for the greenback.

The US currency had pared its advance in early trade when a US Labor Department report showed the number of US workers applying for unemployment benefit soared last week to the highest reading since September 2005, reinforcing fears that the US economy has stalled.

But the report failed to completely snuff out the overall positive sentiment that has surrounded the US dollar in recent days.

NZPA WGT Reuters mjd kn

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