The New Zealand dollar closed firmer in mild trade yesterday, enjoying a supportive flurry mid-afternoon on rumours of significant buying of Australian dollars.
"There was a rumour of a large Australian Government institution in the market for aussie," BNZ forex manager Greg Ball said.
"That rumour has meant we've seen aussie trade up to a high of 52.43USc. That's really been the only move of interest on the day.
"The kiwi has done okay against the US dollar, clearly on the back of the aussie," Mr Ball said. The New Zealand dollar finished at 39.83USc.
The Australian unit, which along with the euro sets the kiwi's direction, ended at 52.25USc and on the cross the kiwi was buying 76.20Ac.
"Overall the market in kiwi felt quite well bid," Mr Ball said. The unit got to 40USc but sellers await beyond.
Yesterday's labour market data had no impact on the kiwi.
Mr Ball expected a volatile night in global currency markets with no resolution yet to the US presidential election. Also of interest is America's central bank rates-setting meeting. The outcome of that - probably no change to interest rates - should be known today.
- NZPA
<i>Currency:</i> Kiwi firms on $A buy rumour
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