NZ Dollar: Kiwi gains on improving risk appetite

The New Zealand dollar lifted as better-than-expected United States economic data sparked increasing risk appetite.

At 8am today the kiwi was buying US57.05c, up from US56.55c at 5pm on Friday.

The US dollar and yen fell broadly as the US data pared demand for both currencies as a refuge against the global slowdown.

Higher-yielding currencies such as the Australian and New Zealand dollars were some of the biggest movers, moving in tandem with higher US stocks.

ANZ bank said the NZ dollar seemed unwilling to push lower despite the Reserve Bank committing to keep interest rates low until the latter part of 2010.

First quarter labour market data releases this week, starting with the quarterly employment survey today, should weigh on the New Zealand dollar's upward grind, "particularly if the data prints as ugly as we think it might", ANZ said.

The NZ dollar was up against other major currencies, rising to 0.4302 euro at 8am today from 0.4264 at 5pm on Friday, and to 56.66 yen from 55.95.

Against the Australian dollar, the kiwi rose to A78.15c from A77.76c, as it edged up from a two-month low around A77.20c early on Friday. The trade weighted index was 56.48 at 8am today from 56.07 at 5pm on Friday.

- NZPA