The New Zealand dollar reinforced its claim on the key US58c region yesterday and looked ready to rise further a local dealer said.
By 5pm the kiwi was buying US58.38c from US58.29c at 5pm on Thursday, while the aussie was at US65.96c (US65.80c).
An ANZ Investment Bank dealer said kiwi opened yesterday morning near its low of US58.15c and closed near its high of US58.38c.
"Not a lot happened initially. The aussie's been pretty well supported this afternoon which has seen the kiwi come up around the US58.35-38c level and it looks reasonably strong on the whole."
The dealer said the kiwi had to convincingly take out resistance at US58.60c. "If we fail up around that area again we could possibly fall to US57.80-90c on the downside.
"Breaking those highs would probably depend on the aussie breaking through US66.20c", he said.
"I think the risks are weighted to the top side. People are talking about retesting previous highs."
The dealer expected to see kiwi trade in a US58.05c to US58.60c range tonight.
Meanwhile at 5pm in Wellington, against the aussie the kiwi was at A88.50c (A88.59c at 5pm on Thursday). The euro was at US$1.1188 (US$1.1205).
The US dollar was buying 117.06 yen (117.25).
On the crosses at 5pm, the kiwi was buying 68.31 yen (68.32), 36.57 pence (36.62), 0.8094 Swiss francs (0.8082), and 0.5216 euro (0.5200).
The monetary conditions index was at plus 264 (259), the trade-weighted index was at 62.45 (62.40) and 90-day bank bill yields were at 5.14 per cent (5.15).
The February 2005 yields were at 5.37 per cent (5.39), the November 2006s were at 5.63 per cent (5.64), and the November 2011s were at 5.97 per cent (5.98).
- NZPA
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