NZ dollar under pressure

The New Zealand dollar is coming under increasing pressure, amid poor sentiment on world financial markets .

The NZ dollar earlier this morning was buying US62.83c, down from US62.96c at 5pm Friday.

Traders had reduced risk appetite and optimism of the recent months was being tempered, BNZ analyst Danica Hampton said.

"We expect May's retail trade statistics [released today] to look decent enough, on the surface, but note that the electronic card transactions data already warn the Q2 trend in spending will be essentially flat once June is factored in."

The New Zealand and Australian dollars were under pressure as trade data from last month in China catalysed sell-offs of commodity currencies, she said.

ANZ senior markets economist Khoon Goh said weak US consumer confidence led to increased safe haven demand for US bonds. But safe havens were hard to find, he said.

"The rally has now faltered as we start to see disappointment in the dataflow once again. Are the green shoots wilting?"

The kiwi was trading at A80.71c from A80.40c on Friday, 0.4505 euro from 0.4498 and 58.11 yen from 58.50.

The trade weighted index was at 59.53, from 59.56 at close last week.

- NZPA