NZ currency: Dollar ends week testing downside

The New Zealand dollar was testing support at lower levels today as the week drew to a close.

The NZ dollar was at US57.10c at 5pm, not far above the US56.80c it dropped to during a bumpy Thursday night.

On Tuesday it was worth as much as US59.10c.

Consumers Price Index data today did not prove to be a market moving event as the 0.3 per cent rise in the index in the three months to March was in line with expectations.

The annual rate of 3 per cent has fallen from an 18-year high of 5.1 per cent as recently as the September quarter.

Economists were divided on the implications for interest rate policy, with Deutsche Bank seeing little merit in further interest rate cuts.

However, the NZ dollar continues to move around largely in reaction to changes in international investors' appetite for risk.

Data this week, including weaker than expected GDP data in China, suggested the global economy is still struggling.

Speculators and intraday traders have been driving trading in major currencies.

The NZ dollar edged up against the Australian dollar to A79.40c at 5pm from A79.20c yesterday.

The NZ dollar was 0.4362 euro from 0.4360 and 56.80 yen from 56.95. The trade weighted index was 56.94 at 5pm from 57.04 yesterday.

- NZPA