A record July trade deficit failed to dent the New Zealand dollar today.
The market focus was on the United States dollar which was under pressure because of a surprise weakness in US durable goods orders data the previous day.
Orders tumbled 4.9 per cent in July, the biggest drop in more than a year and a half, and worse than economists' forecast of a 1.2 per cent drop.
At 5pm today, the kiwi was worth US69.83c, compared to US69.46c at the same time yesterday.
A trader said the kiwi had fallen to US69.49c when the record trade deficit data came out.
But a government bond tender had been well supported by foreign buyers and helped the kiwi rebound, he said.
The July trade deficit was a record $617 million, compared to a deficit of $384m in July 2004, while the July year deficit swelled to $5.4 billion from $3.42 billion a year earlier.
In Wellington, the euro closed on US$1.2312 compared to US$1.2180 at yesterday's close, while the greenback was buying 109.86 yen from 110.58 yesterday.
The aussie rose to US75.87 from US75.23c.
On its key crosses the kiwi was buying A92.05 (A92.45c yesterday), 0.5672 euros (0.5711), 0.8793 Swiss francs (0.8876), 38.68 British pence (38.79) and 76.72 yen (76.93).
On a trade-weighted basis, the kiwi was at 70.06 (70.18) and the monetary conditions index was at 1027 (1037).
On the money market, 90-day bank bill yields were on 7.04 per cent (7.05 per cent), while July 2009 bond yields were 5.77 per cent (5.77) and the April 2015s were 5.75 per cent (5.73).
- NZPA
<EM>Currency:</EM> NZ dollar undented by trade deficit
AdvertisementAdvertise with NZME.