KEY POINTS:
The New Zealand dollar was volatile again today but the latest move was up.
It rose during its domestic session on covering of short positions. Earlier it tumbled.
The falls come when risk aversion dominates sentiment and the rises come when it abates or when traders shift positions.
There has been little domestic economic news this week and the focus is on the Reserve Bank of New Zealand's regular interest rate review on October 23.
By 5pm today the NZ dollar was buying US61.05c, up from US60.70c at 8am . Just 4-1/2 hours before the open it had touched US62.60c.
Anyone planning a trip to Australia is smiling as the New Zealand dollar rose to A90.87c at 5pm from A88.75c at 5pm yesterday.
The NZ dollar is expected to find support around US59.15c and encounter selling around the US61c figure.
The US dollar has fallen against the yen as investors fear a global recession.
The NZ dollar was at 4530 euro from 0.4542, and to 61.10 yen from 62.50. The trade weighted index was 60.63 at 5pm from 60.84 at 5pm.
Currency rates:
NZ dlr/US dlr US61.05c US61.70c
NZ dlr/Aust dlr A90.87c A88.75c
NZ dlr/euro 0.4530 0.4542
NZ dlr/yen 61.10 62.50
NZ dlr/stg 35.28p 35.40p
NZ TWI 60.63 60.84
Australian dollar US67.29c US69.52c
Euro/US dollar 1.3469 1.3576
US dollar/yen 100.19 101.35
- NZPA
