WELLINGTON - The New Zealand dollar finished another day of rather meaningless trade this week softer as it tailed its Australian counterpart.
The kiwi closed at 47.40USc from 47.48c at the open and 47.76c on Tuesday, and it varied within a narrow range of 47.30-56USc.
But it outperformed against the aussie, rising to 78.95Ac (78.86c on Tuesday) while the Australian dollar itself weakened to 60.04USc (60.56c).
A currency dealer said local trade was very quiet amid a dearth of catalysts, but the unit had done well given aussie softness. The kiwi went into overnight markets with an underlying bid tone.
"It is susceptible to further aussie weakness should that occur," the dealer said. The aussie was moving on transactional flows and option plays rather than meaningful fundamentals.
New Zealand dollar players were looking to the next significant data, Monday's March quarter gross domestic product numbers, with a positive view.
"People want to buy, but are very cautious considering the weakness over the course of the day in the aussie," the dealer said.
Data showing retail sales grew an estimated 0.7 per cent in May compared with April had no impact.
- NZPA
Kiwi outperforms Aust dollar
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