NZ dollar pushes up to US71c

In early trade today the New Zealand dollar pushed up to the US71c level against the greenback for the first time in five weeks after China said it would allow more yuan appreciation.

The Chinese move was taken as a vote of confidence in the staying power of the global recovery, and also boosted the Australian dollar against the United States currency.

By 8am today the NZ dollar was buying US71.01c from US70.39c at 5pm on Friday.

In its morning briefing notes, ANZ said there was uncertainty as to what extent the People's Bank of China would allow its currency to appreciate, but it was looking to be a "slow and steady grind".

The fact the appreciation would be slow or negligible was being viewed as mildly positive - at least against the anticipated alternative - for Chinese growth, equities, risk, Australian exports, the Australian dollar, and by extension the NZ dollar, ANZ said.

Markets were keenly waiting for New Zealand gross domestic product data, due out on Thursday, as they contemplated the outlook for Reserve Bank policy.

The NZ dollar also gained to 0.5709 euro at 8am today from 0.5678 at 5pm on Friday, and was up to 64.23 yen from 63.88.

Against the Australian dollar, the kiwi fell to A80.54c at 8am from A80.98c at 5pm on Friday, while the trade weighted index was up to 67.95 from 67.69.

- NZPA