NZ currency: Dollar largely unchanged

The New Zealand dollar was little changed today ahead of the release of key economic data this week prior to the Christmas holiday break.

The NZ dollar was US71.04c at 5pm from US71.16c on Friday, having dropped to a week-low against early on Saturday around US70.65c.

The dip occurred when the US dollar rose against most major currencies. Investors who sold the US dollar for most of 2009 are buying it back as the year-end nears.

ASB said monthly net migration data released today remained firm in November, helping to underpin domestic demand. The low rate of departures is putting pressure on the housing market, adding to inflation pressures and testing the patience of the Reserve Bank of New Zealand.

But the focus is on third quarter current account data due tomorrow and third quarter gross domestic product data due on Wednesday.

The economy probably expanded 0.3 per cent in the September quarter, according to a poll by Reuters.

The NZ dollar was little changed at 0.4948 from 0.4944 at Friday's local close, and at 64.21 yen from 63.72. Against the Australian dollar, the NZ dollar slipped to A79.92c from A80.04c at 5pm on Friday. The trade weighted index was 64.81 from 64.77.

ANZ bank said signs of improvement in the US economy have helped the US dollar in recent days, as did the Federal Reserve's pledge last week to wind down most emergency lending by February, lifting hopes of a more robust US recovery in 2010.

- NZPA