The New Zealand dollar ended on its highs yesterday. Sellers were sidelined ahead of a couple of potentially positive announcements this week.
"We are going to have a pretty quiet week, with a slight bias for domestic factors being positive," director at treasury consultancy Greenwich Financial Services Jon Clarke said.
The kiwi finished at 39.74USc, just off the day's high at 39.81c and well above the early low of 39.55c.
Today sees the August quarterly employment survey and the third quarter labour cost index which indicates wage and salary movements.
Mr Clarke said that if this information supported last week's surprisingly strong household labour force data people might revise economic growth expectations, a plus for the currency.
On Friday, competition watchdog the Commerce Commission is due to rule on whether Royal Dutch Shell can buy Fletcher Challenge Energy. If Shell gets the go-ahead it may have to buy some New Zealand currency, boosting overall demand.
Mr Clarke said the other main factor for the kiwi was the uncertainty over who will eventually carry the presidential election. A win for republican George Bush is seen as negative for the euro, which would weaken the Australasian currencies, while intervention to support the euro is deemed more likely under Al Gore.
- NZPA
<i>Currency:</i> Kiwi looks for positive signs
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