The New Zealand dollar recovered some of last night's losses during today's local session after the US dollar rediscovered its familiar recent run of weakness.
At 5pm in Wellington, the kiwi was at US63.96c from US64.13c at 5pm last night having started today's session near its low of US63.54c and finishing at its highs for the day. The Australian dollar was at US72.12c (US72.33c last night).
The kiwi was strength was, predictably, "on the back of US dollar weakness", a Wellington dealer said.
The US dollar was suffering as the United States and China continued their tariff row. "So we've seen the euro and the aussie rally on the back of that".
Meanwhile, the kiwi was seeing "pretty good support around that US63.55c to US63.60c area, and resistance at around today's close.
"I think we'll get a few offers up around this US63.95c to US64c area but if the figure breaks we're probably going to head higher again", he said.
Most major currencies were looking firmer against the dollar and likely to head higher, he said.
The dealer expected to see the kiwi trade in a US63.60c to US64.30c range in offshore sessions tonight but 3rd quarter US GDP data would be the critical factor.
Last quarter's figure was unexpectedly large. Another surprising robust figure would lend the greenback strength, sending the kiwi lower again.
Meanwhile, at 5pm in Wellington, the euro was at US$1.1804 (US$1.1909 last night), while the greenback was buying 109.38 yen (108.90).
Against the aussie the kiwi was at A88.69c (A88.67c).
On other crosses the kiwi was buying 69.96 yen (69.84), 37.65 pence (37.61), 0.5419 euro (0.5386), and 0.8424 Swiss francs (0.8333).
The Australian dollar was buying $1.1274 ($1.1278).
The trade weighted index was at 65.49 (65.43), while the monetary conditions index was at plus 525 (519), and 90-day bank bills were at 5.39 per cent (5.38).
On the debt market, April 2004 bonds were at 5.27 per cent (5.28), February 2006s were at 5.81 per cent (5.74), and November 2011s were at 6.20 per cent (6.14).
- NZPA
<i>Currency:</i> Kiwi bobs higher as Greenback softens again
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