The New Zealand dollar was rangebound again yesterday, as investors digested worrying growth data out of the US overnight and a mixed bag of trade data locally.
At 5pm, the kiwi was at US41.31c, just shy of its 9am level, but down on Thursday's US41.81c close. Its Australian counterpart was down by a similar amount at US50.39c (US50.82c at Thursday's close).
"It was a very quiet day for the New Zealand dollar," one local currency dealer said.
US data overnight showed the number of Americans signing up for jobless benefits rose last week, while orders for costly US durable goods and existing home sales plunged in September - cementing fears the world's biggest economy was in recession.
On the local front, trade data out this morning showing New Zealand's annual surplus for the September year was $868 million - a seven year high - failed to impress the market.
That figure, which surprised on the upside - markets had been expecting a $618 million surplus - was weighed down by a smaller than expected import number, the dealer said.
"The positivity of a good trade number was corresponding with the negativity of a low imports number.
"On the one hand you have got good trade numbers - positive for the kiwi, on the other hand you have got slowing growth in the import sector - which is negative on a growth perspective.
"(Kiwi and aussie) are commodity currencies - we live or die by growth."
Imports were $2.70 billion, down around eight percent on the market's expected $2.93 billion.
Dealers expected the kiwi to trade in a US41.20c to US41.45c range overnight.
On the crosses at 5pm the kiwi traded at A81.98c (A82.27c at Thursday's close), 0.4622 euros (0.4680), 50.73 yen (51.42), 28.94 pence (29.30), 0.9040 marks (0.9153), and 0.6821 Swiss francs (0.6928).
The Australian dollar rose to $NZ1.2200 from yesterday's $NZ1.2155 close.
The 90-day bill yields were steady at 5.06 per cent, the trade-weighted index was at 49.46 (50.00) and the monetary conditions index loosened to minus 912 (minus 858).
Among the bonds, the March 2002s were at 4.88 per cent (4.90), the April 2004s were at 5.12 per cent (5.17), the November 2006s were at 5.71 per cent (5.77) and the November 2011s were at 6.32 per cent (6.39).
- NZPA
<i>Currency:</i> Kiwi rangebound on negative US growth figures
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