The kiwi fell today after a reported slump in local business confidence and ahead of tomorrow's Reserve Bank interest rate announcement.
At 5pm the kiwi was buying US72.22c from US72.82c at 5pm yesterday having tested the US72c support level during the day.
The kiwi faltered this morning following the release of the latest ANZ National Bank Business Survey which showed growing pessimism about the local economy.
The survey found a net 48 percent of local firms expected general business conditions to deteriorate over the next year, up from just 19 percent last month.
BNZ currency strategist Sue Trinh said while the survey also pointed to persistent inflationary pressures, most analysts had focused on the low business confidence numbers.
She said some people were now picking a hard landing for the New Zealand economy, which would be negative for the kiwi.
In the shorter term, the local market is now preparing for tomorrow's Reserve Bank's interest rate announcement. Most of the market is expecting the RB to leave its key rate on hold at 6.75 percent.
On the crosses this afternoon the kiwi was buying A93.00c (A93.26c at 5pm yesterday), 0.5570 euro (0.5596), 76.69 yen (77.03), 37.90 British pence (38.07), and 0.8588 Swiss francs (0.8637).
Meanwhile the euro was at $US1.2967 ($US1.3011), while the greenback was buying 106.19 yen (105.80) and the Australian dollar was at US77.66c (US78.06c) The trade-weighted index was at 70.52 (70.86), and the monetary conditions index was at plus 1058 (1084).
On the money markets, 90-day bank bill yields were unchanged at 7.02 percent, July 2009 bonds were at 5.95 percent (5.96) and April 2015s were at 5.89 percent (5.90).
- NZPA
<EM>Currency:</EM> Kiwi falls as market waits on rates call
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