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NZ Dollar Drifts Lower

Contributor:
Fuseworks Media
Fuseworks Media

Wellington, April 3 NZPA - The New Zealand dollar drifted slightly lower on its main crosses in quiet trading today with no domestic economic data of any note to spur investors. By 5pm, the kiwi was at US78.75 from the US79c level at 8am. Overnight it had peaked around US79.25c, from US78.82c at 5pm yesterday.

"With no domestic data out, it is pretty much confined to recent ranges we have seen," said Murray Hindley of ANZ.

Towards the end of the week, retail sales data in Australia and non-farm payrolls data in the US could be catalysts for the market.

BNZ said investors may be adjusting positions in the lead-up to the US non-farm payrolls.

"Speculators have built extremely large positions betting on USD weakness and yen strength over the past few weeks," he said.

BNZ said the New Zealand dollar was knocked from its highs overnight against the US dollar, as the greenback rebounded following comments from Federal Reserve chairman Ben Bernanke.

His language suggested the Fed may be more measured about cutting interest rates over the coming months.

"We suspect the New Zealand dollar will become a bit of side-show and we look for the local currency to continue to consolidate within familiar ranges," BNZ said.

Against the yen, the NZ dollar was at 80.71 from 80.85 at today's local open, but above 80.25 at 5pm yesterday.

It slipped against the Australian dollar and the euro, to be buying A86.20c at 5pm from A86.73c at yesterday's local close and 0.5034 euro from 0.5053. The trade weighted index was 70.45 at 5pm from 70.58.

NZPA WGT Reuters pjg cw

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