The New Zealand dollar recovered some ground today on the back of a broadly weaker US dollar, returning to six-month highs.
The kiwi traded between US65.45 and US65.83 during the local session, buying US65.69 near the end of the day.
"It's just continuation of momentum from the New York close on Friday," said Mark Elliott, ANZ Investment Bank senior dealer and technical analyst. "It opened near its lows and it just continued to firm up throughout the day."
The kiwi was headed higher, although it was likely to be sold off fairly heavily once it reaches the low US66c area, Mr Elliott said.
ANZ Bank said yield demand sealed last week for the NZ dollar as it completed its largest weekly gain - 3 per cent - since May 2004.
On Friday, the US dollar jumped after better-than-expected headlines on non-farm payrolls data, before reversing those gains as analysts realised little in the numbers would change the outlook for US Federal Reserve policy.
Today's strong Australian building data, a day before the Reserve Bank of Australia holds its monthly policy meeting, is seen to be putting pressure on the central bank to raise interest rates. However, analysts believe the RBA will hold rates steady tomorrow.
Monday is Labor Day public holiday in the US.
The following are Reuters currency rates:
5.45pm today 5pm Friday
NZ dlr/US dlr US65.69c US65.54c
NZ dlr/Aust dlr A85.30c A85.69c
NZ dlr/euro 0.5106 0.5117
NZ dlr/yen 76.52 76.83
NZ dlr/stg 34.43p 34.42p
NZ TWI 65.37 65.48
Australian dollar US77.00c US76.48c
Euro/US dollar 1.2862 1.2807
US dollar/yen 116.49 117.23
- NZPA
<i>Currency:</i> Kiwi returns to six-month highs
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