The New Zealand dollar dipped after the country's pace of economic growth was revised down, though continued to beat expectations, and as the Federal Reserve gets closer to making a call on whether to hike interest rates.
The kiwi fell to 77.13 US cents at 5pm in Wellington from 77.80 cents at 8.15am and 77.36 cents yesterday. The trade-weighted index increased to 77.80 from 77.68.
New Zealand's economy grew 1 percent in the three months ended Sept. 30, beating economists' expectations, though the track of annual expansion was revised down after Statistics New Zealand changed the way it measures certain industries. While the quarterly growth initially stoked a rally in the kiwi, the downward revisions weighed in investors' appetite for the currency, which had already been dented by Fed chair Janet Yellen indicating rate hikes will be on the cards after the next two meetings.
"The fact that GDP was better than forecast, but revisions from the previous years meant it was a bit of a much of a muchness," said Tim Kelleher, head of institutional FX sales NZ at ASB Institutional in Auckland. "The kiwi's had a couple of goes at 77.50 US cents and failed, but is still largely in a range between 76.50 and 78.50."
ASB's Kelleher said markets were volatile and illiquid heading into the holiday period, and US data next week will largely drive the local currency's direction.
