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NZ Dollar Edges Up As FX Markets Seen Lacking Direction

Contributor:
Fuseworks Media
Fuseworks Media

Wellington, April 9 NZPA - The New Zealand dollar edged up overnight after falling for the past few days, with the foreign exchange markets seen to be lacking direction.

By 8am the kiwi was buying US57.77c from US57.30c at 5pm yesterday.

BNZ Capital currency strategist Danica Hampton said the NZ dollar spent most of the night chopping around in a range between US57c to US58c, as risk appetite ebbed and flowed.

She suspected the NZ dollar would struggle above US58c today with the global backdrop not providing much support.

But the kiwi could move back towards A82.50c against the Australian dollar if Australian jobs data due out today (1.30pm, New Zealand time) was disappointing.

The kiwi was buying A81.50c at today's local open from A80.95c at 5pm, and also rose to 57.57 yen at 8am from 57.35.

The NZ dollar edged up to 0.4359 euro, while the trade weighted index lifted to 57.64 at 8am from 57.27 at 5pm.

The US dollar fell against the yen as concerns about corporate earnings in the United States and a volatile Wall Street boosted the safe-haven appeal of the Japanese currency.

Analysts said that with liquidity thinning before the Easter holiday weekend, currencies were largely being driven by risk sentiment and equity markets.

"It seems the (foreign exchange) market overall is lacking direction and just reacting to short-term moves in equities," said Vassili Serebriakov, currency strategist at Wells Fargo in New York.

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