The New Zealand dollar chased its tail today, after a week of healthy economic data which has pushed it to fresh six-week highs.
The kiwi ended near its opening figure at US70.42c, although strong than last night's close of US70.14c. During the session it peaked at US70.73c, firstly on a softer greenback against the yen and then on robust retail sales for the June quarter.
The kiwi was expected to possibly test US70.80c overnight but Westpac currency strategist Jonathan Bayley said most of the action has really been driven from offshore.
He said the greenback had suffered and was likely to continue to do so with the release of the US trade report tonight.
However, the kiwi dollar had traded largely sideways against other major currencies.
"Offshore markets are still of the opinion that the kiwi dollar should be sold on its strength," he said.
A week of good data, including almost record low unemployment and a soft US dollar, confirmed New Zealand's economy was still robust.
Today's retail figures showed sales rose by a seasonally and inflation-adjusted 1.3 per cent in the June quarter -- over double economists' expectations.
But the market reaction was muted, with a 10 point rise which was quickly lost.
Other currency movements against the greenback included the aussie, up at US77.23c (US76.95c at yesterday's close) ; the euro rose to 1.2457 (1.2419); and the US dollar fell to 109.83 yen (110.25 yen).
On the crosses, the kiwi edged down to A91.20c (A91.25c), gained slightly against the euro at 0.5654 (0.5650), fell slightly against the pound at 38.94 (38.99), and was virtually square with the yen at 77.35 (77.34).
It slipped to 0.8782 against the Swiss franc (0.8789) and the Australian dollar gained slightly to $1.0965 ($1.0975).
On a trade-weighted basis the kiwi was at 70.23 (70.07). The MCI rose to 1039 (1028).
On the money market, 90-day bank bill yields were at 7.04 per cent (7.04), July 2009 bond yields were steady on 5.86 per cent, and April 2015s also flat on 5.86 per cent.
- NZPA
<EM>Currency:</EM> Kiwi pauses for breath
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