Better-than-expected Australian employment numbers boosted the New Zealand dollar above US42c yesterday.
At 5pm the kiwi was at US42.12c from US41.73c at Wednesday's close, while its Australian stablemate gained half a cent to US51.46c (US50.96c).
The Australian Bureau of Statistics said employment grew by 101,800 jobs in January, well above analysts' expectations for a 10,000 increase.
"As a result we saw some pretty aggressive buying interest in the Australian dollar which has taken that up through US51c to a high around US51.50c and that in turn has pulled the kiwi up with it," one local dealer said.
Overnight the kiwi would continue to look to the aussie for direction, the dealer said.
"If the aussie dollar caps out at about US51.50c or US51.60c then you could see the kiwi stop at about US42.20c. However, if the Australian dollar continues to range higher, then that will push the kiwi higher as well."
On the crosses at 5pm the kiwi was buying A81.86c (A81.96c at Wednesday's close), 55.81 yen (55.45), 29.47 pence (29.14), 0.7158 Swiss francs (0.7042), and 0.4827 euro (0.4769). The aussie was slightly weaker against the kiwi at $NZ1.2217 (1.2201).
The trade weighted index was at 51.24 (51.10), the monetary conditions index was at minus 748 (minus 765), and 90-day bank bills were at 4.93 per cent (4.90).
On the debt market, March 2002 bonds were at 4.75 percent (4.73), April 2004s were at 5.89 (5.81), November 2006s were at 6.46 per cent (6.35), and November 2011s were at 6.72 per cent (6.60).
- NZPA
<i>Currency :</i> Kiwi tops US42c on Aussie employment numbers
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