The New Zealand dollar ignored stronger than forecast economic growth data yesterday slipping just below US55c.
Dealers said Thursday's concerns about the economic effects of New Zealand's strong currency, particularly against the Australian dollar, kept the kiwi dollar flat. It closed at US54.97c compared with its US54.89c close on Thursday .
The Australian dollar was trading at US59.93c (US60c at Thursday 's close). After falling A1.5c over the week, the kiwi-aussie cross appeared to have found a place to settle around A91.73c (A91.46c).
``We've seen a bit of liquidation from offshore accounts on that cross and the feeling is we may see some more, so we could see that cross back down around A90c,'' said Murray Hindley, chief foreign exchange dealer at ANZ Investment Bank.
The kiwi was unmoved by GDP data which was 0.8 per cent higher for the December quarter, and 4.4 per cent higher over the year.
Economists predicted the economy had expanded by 0.6 per cent in the December quarter to give an annual growth rate of 4.2 per cent.
The market also took a bleak National Bank's monthly business confidence survey in its stride. The survey showed a steep increase in pessimism, but brokers said it had been foreshadowed by an earlier Auckland Chamber of Commerce survey.
Mr Hindley picked the kiwi dollar to trade between US54.80c and US55.10c overnight.
On other crosses, the kiwi was buying 0.5144 euro (0.5126), 35.10 pence (34.82), 0.7607 Swiss francs (0.7570) and 66.11 yen (65.71).
The Australian dollar slipped to $NZ1.0902 ($NZ1.0934).
On the money market, 90-day bills were steady at 5.86 per cent, the monetary conditions index was at plus 198 (plus 182), and the trade-weighted index was at 60.79 (60.58).
Among the bonds the April 2004s were flat at 5.48 per cent, the November 2006s were at 5.58 per cent (5.59) and the November 2011s were at 6.03 per cent (6.04).
- NZPA
<i>Currency:</i> Kiwi ignores strong GDP data
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