The New Zealand dollar hovered near six-month highs today as the market eyed the release of US jobs data overnight.
The kiwi dollar closed at US65.54c, having touched a six month peak of US65.70c during the day, and against yesterday's close of US65.15c.
The local currency was also stronger against the Australian dollar, closing at A85.69c (compared with A85.51c yesterday).
Dealers said the currency had been sold heavily by Japan but offset by local and offshore hedge fund buying reportedly on yield. But Mark Elliott, a senior dealer at ANZ Investment Bank, did not believe the kiwi's strength would be sustained.
"I think we're very overstretched, very overbought and we're not going to kick on too much further.
"Where we are is an important top and I suspect over the next week or two, we'll be two or three US cents lower again."
He forecast an overnight range of US65.20/60c.
US jobs data out tonight is expected to show the economy has added 120,000 new jobs in August but analysts do not expect it to provoke a further interest rate rise.
The NZ dollar was also strong against other major trading partners, at 0.5117 euro from 0.5080 at 5pm yesterday, and 76.83 yen from 76.48. The TWI was at 65.46 from 65.11
Reuters currency rates:
5pm today 5pm yesterday
NZ dlr/US dlr US65.54c US65.15c
NZ dlr/Aust dlr A85.69c A85.51c
NZ dlr/euro 0.5117 0.5080
NZ dlr/yen 76.83 76.48
NZ dlr/stg 34.42p 34.22p
NZ TWI 65.48 65.11
Australian dollar US76.48c US76.16c
Euro/US dollar 1.2807 1.2824
US dollar/yen 117.23 117.36
- NZPA
<i>Currency:</i> Kiwi pauses for breath near six month highs
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