The New Zealand dollar and local government bonds consolidated recent gains yesterday as they started the week with a positive tone after negative US jobs data which cast doubt on the strength of the US economic recovery.
The kiwi stayed close to its opening levels of around 57.65USc from the close of the previous week of 57USc.
"There's not been much action locally and the focus is really what happens to the greenback and the action surrounding the euro and yen," a trader said.
"The short-term tone is still bullish given the strength of the bounce out of last week's lows, and the softening of the growth camp."
Bank of New Zealand currency strategist Sue Trinh said the market had a "wake up call about the potential vigour of the global recovery".
The recent range for kiwi trading was seen as intact, with the currency set to be driven by the bigger plays involving the major currencies including intervention by the Bank of Japan to cap the yen.
Government bond yields, like the kiwi, were beneficiaries of the poor US jobs data.
Bonds held most of their gains through the day but the short end of the curve retreated a tick or two as the session progressed.
At the end of the day, local yields were seven to 11 basis points lower.
- NZPA
<I>Currency:</I> Kiwi spikes up after US data
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