NZ Dollar: Kiwi consolidates after weekend dip

A dip in the New Zealand dollar against the greenback was quickly reversed, showing underlying demand remains in place for the kiwi.

Around 8am today the NZ dollar was buying US64.10c from US64.25c at 5pm on Friday, having dropped to US63.60c early on Saturday.

ANZ bank said the reversal from the lowpoint demonstrated underlying demand for the NZ currency.

Support levels appeared relatively robust but may be in for further testing if the trading week kicked off with the United States dollar's safe haven status elevated, ANZ said.

With little local economic data due for release, the focus would be offshore and on moves of the US dollar.

The NZ dollar started the local trading week slightly ahead against the European and Japanese currencies, compared to Friday evening, with the kiwi at 0.4571 euro and 63.04 yen by 8am today.

Against the Australian dollar the kiwi was down slightly to A78.81c, while the trade weighted index slipped from 60.62 at 5pm on Friday to 60.60 at 8am today.

The US dollar rose broadly, rebounding from a selloff earlier this week, while demand for the euro fell after data showed a plunge in euro zone industrial production.

- NZPA