Rallies by the euro and the aussie dollar gave the New Zealand unit a hand up yesterday, despite local trade figures suggesting an end to the country's brief stay in the black was nigh.
At 5pm, the kiwi was at US41.62c from US41.31c at yesterday's close, while its aussie mate was at US52.26c (US52.06c). The euro was buying US88.34c (US88.20c).
"(Kiwi) is just sort of following the aussie higher and the euro higher," one local dealer said.
Statistics New Zealand yesterday reported a provisional trade deficit for October of $267 million against economists' forecasts of a $30 million deficit.
The trade surplus for the October year was estimated at $796 million, against forecasts of $1.02 billion and against a surplus of $857 million in the September year.
The annual figures only returned to the black in July for the first time in six years.
Financial markets were unfazed by the data, focusing instead on an unexpected fall in US consumer confidence overnight.
The Conference Board, a private research group, said its index of consumer confidence fell to 82.2 in November from 85.3 in October, its fifth straight month of decline. Economists had expected a rise to 87.9.
That data cooled the market's recent enthusiasm for the greenback, allowing dollar bloc currencies to make some gains, dealers said.
The kiwi was expected to have another quiet session in the evening, trading between US41.50c and US41.75c.
On the crosses at 5pm the kiwi was buying A79.66c (A79.35c at yesterday's close) , 51.46 yen (51.34), 29.39 pence (29.22), 0.9211 marks (0.9160), 0.6895 Swiss francs (0.6864) and 0.4710 euros (0.4683).
The aussie was buying $NZ1.2557 ($NZ1.2600).
The trade-weighted index was at 49.73 (49.47), the 90-day bank bills were at 4.85 per cent (4.89) and the monetary conditions index was at minus 906 (minus 929).
On the debt market, the March 2002 bonds were at 4.74 per cent (4.77), the April 2004s were at 5.42 per cent (5.52), the November 2006s were at 6.00 per cent (6.10), and the November 2011s were at 6.51 per cent (6.63).
- NZPA
<i>Currency:</i> Kiwi rides up with Euro and Aussie
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