The New Zealand dollar took a tumble yesterday as it crashed through a technical support level.
At 5pm the kiwi traded at US43.45c compared with Friday's close of US43.82c, while the aussie was at US52.84c (US53.07c).
Dealers said the day's large range, from US43.70c to US43.27c, was due to the kiwi's fall through a technical barrier of US43.50c.
The lack of demand was put down to overseas nervousness about global growth, partly due to Middle East tension and partly to weaker than expected US payroll and unemployment data.
A substantial portion of the market had also taken "long" positions in kiwi and aussie, which are traditionally ignored for "safer" currencies at times of risk.
"The market's long and wrong," said one dealer. "The next key area is US43.20c - if it holds there we will get a bounce."
However, the dealer said it could be also argued that the poor US data could work in New Zealand's favour - a weaker greenback meant interest rates were less likely to rise in the US, making New Zealand and Australia's rates more attractive.
He expected the kiwi to trade between US43.22/55 overnight.
On the crosses at 5pm the kiwi slipped against the major currencies, trading at A82.23c (A82.58c at Friday's close), 0.4949 euro (0.4987), 57.11 yen (57.97), 30.34 pence (30.55) and 0.7246 Swiss francs (0.7300).
The aussie was at $NZ1.2160 ($NZ1.2108).
The monetary conditions index eased to minus 564 (minus 521), the trade weighted index was at 52.46 (52.91), and 90-day bank bills were at 5.58 per cent (5.59).
On the debt market, the April 2004 bonds were at 6.19 per cent (6.23), the November 2006s were at 6.65 per cent (6.68) and the November 2011s at 6.82 per cent (6.84).
- NZPA
<i>Currency:</i> Kiwi topples over on stop-loss selling
AdvertisementAdvertise with NZME.