The New Zealand dollar made up some ground on the Australian currency today as the fall in commodity prices took a toll across the Tasman.
Around 5pm the kiwi was buying A82.20c, up from A81.72c at 8am, while it was barely changed on the day against the United States dollar at US61.87c. The TWI was at 61.65 from 61.49 this morning.
Against other currencies, the US dollar was extending gains made late last week when investors shifted money into US assets out of commodities such as gold and oil.
Traders said the US dollar was ready for a correction after a rapid fall that sent the currency to an eight-month low against the yen and a year-low versus the euro last week.
The Bank of New Zealand said that while positive sentiment for the greenback was bearish for the kiwi, local appetite for the New Zealand dollar from exporters and real money accounts was continuing to provide some support.
With commodity prices on the back foot and investors likely to further trim long Australian dollar positions, the kiwi was expected to continue to outperform its trans-Tasman counterpart, BNZ said.
ANZ said a key aspect of the wider US dollar-related moves was a shift in attention by the speculative community and marginal sellers away from emerging markets, including the New Zealand dollar.
But while there was a generalised theme of risk reduction last week, ANZ did not believe that was a precursor to another leg of New Zealand dollar weakness in the near-term.
The following are Reuters currency rates:
5pm today 5pm Friday
NZ dlr US61.87c US62.26c
NZ dlr/Aust dlr A82.20c A81.55c
NZ dlr/euro 0.4853 0.4850
NZ dlr/yen 69.32 69.12
NZ dlr/stg 33.04 32.90
NZ TWI 61.65 61.62
Australian dollar US75.23c US76.33c
Euro/US dollar US1.2750 US1.2836
US dollar/yen 112.04 110.82
- NZPA
<i>Currency:</i> Kiwi makes up ground on Australian dollar
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