The New Zealand dollar reversed early gains to trade below US47c yesterday on the back of weak retail sales and growth data across the Tasman.
By 5pm the kiwi was at US46.85c from US47.05c at its local open, while its Australian trading mate dipped to US54.90c (US55.20c at start).
Official figures out yesterday showed Australian retail spending fell for the first time in 10 months in July after a big drop in spending at department stores .
Allowing for seasonal factors, retail trade fell half a per cent in July to $A14.35 billion ($NZ17 billion), ending a run of nine successive rises, the Australian Bureau of Statistics said.
Australia's economic growth in the June quarter was also slightly softer than expectations. The bureau reported Australian gross domestic product (GDP) grew by 0.6 per cent in the quarter, against median forecasts of a 0.7 per cent rise.
For the year GDP rose by 3.8 per cent.
"The aussie dollar drifted lower in the afternoon after the weak data we had in Australia with the retail number and the GDP number coming in below forecast. That in turn weighed on the kiwi," Bank of New Zealand's chief currency dealer Mike Symonds said.
"Both of them are still very much within familiar territory, but at the moment that US47.10c area for the kiwi is looking reasonably formidable.
"In broad terms the US46.30c to US47.30c range that we've seen for the best part of two weeks is still very much intact."
On the crosses at 5pm the kiwi was buying A85.34 cents (85.19 at Monday's close), 55.29 yen (55.45), 30.21 pence (30.17), 0.7004 Swiss francs (0.7013), and 0.4759 euro (0.4763).
The aussie was trading at $NZ1.1717 ($NZ1.1739).
On the money market, 90-day bills were at 5.87 per cent (5.88), the trade-weighted index was at 53.37 (53.34) and the monetary conditions index was at minus 450 (minus 451).
On the debt market bonds rallied across the curve, as yesterday's weak Australian data pointed to the Reserve Bank of Australia leaving interest rates on hold at today's review. The April 2004 bonds were at 5.60 per cent (5.69), the November 2006 bonds were at 5.95 per cent (6.04), and the November 2011 bonds were at 6.21 per cent (6.29).
- NZPA
<i>Currency:</i> Kiwi knocked lower by weak Aussie data
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