The kiwi dollar gained nearly three quarters of a cent on the aussie dollar following weak Australian GDP data and despite a rate hike there.
The kiwi closed at A92.80c compared with A92.08c at 5pm yesterday. Australian gross domestic product (GDP) rose an adjusted 0.1 per cent in the December quarter, taking year on year growth to 1.5 per cent.
The data comes as the Reserve Bank of Australia lifted interest rates by 25 percentage points to 5.5 per cent -- the first move in more than a year.
"On face value it is quite bizarre that you get 0.1 per cent growth and 0.1 per cent growth in the second half of last year, then you get a rate increase," said NAB senior economist Spiros Papadopoulos.
While the Australian dollar fell to US78.17c against the US unit from US78.70c at 5pm yesterday, the kiwi held steady on US72.55c despite the US dollar gaining on most currencies.
Sentiment for the Australian dollar was already weak following yesterday's record current account deficit for the December quarter of A$15.174 billion ($16.57b), or 7 per cent of GDP.
Pressure was also added when Treasurer Peter Costello suggested the current account data showed the aussie was over valued.
Meanwhile, the greenback was at 104.62 yen (104.63) and the euro was at US$1.3170 (US$1.3194).
On its other major crosses, the kiwi was at 5pm buying 0.5509 euros (0.5493), 37.83 British pence (37.75), 75.92 yen (75.80) and 0.8470 Swiss francs.
The Trade Weighted Index (TWI) closed at 70.25 (70.04) and the monetary conditions index was at plus 1024 (1008).
On the money markets, 90-day bank bill yields ended on 6.87 per cent (6.86 per cent), July 2009 bonds closed on 6.21 per cent (6.24) and April 2015s on 6.10 per cent (6.12 per cent).
- NZPA
<EM>Currency:</EM> Kiwi gains on aussie after weak Australian GDP data
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