Kiwi dollar knocks on door of Aussie parity

An Australian one-hundred dollar banknote, top, and a New Zealand one-hundred dollar banknote.

The New Zealand dollar has been knocking on the door of parity with the Australian dollar over Easter, touching just under 99.7c tonight.

The kiwi closed at a post a new post-float high against the Australian dollar before the long weekend and as traders looked ahead to non-farm payrolls data in the US and what is expected to be an interest rate cut by the Reserve Bank of Australia after the long Easter weekend.

The kiwi traded at 98.51 Australian cents on Thursday night, the closest it has come to parity since being allowed to trade freely in the 1984.

The kiwi strengthened against the Australian dollar after figures showed Australia's trade deficit widened for a third month in February, to A$1.26 billion, just under-shooting a Bloomberg survey forecasting a gap of A$1.3 billion.

Bloomberg data showed the kiwi at 99.61 Australian cents last night.

The strong New Zealand currency is worrying exporters who send goods across the Tasman. Tourist here operators fear fewer Australians - this country's main source of tourists - will visit and more New Zealanders will be tempted to take their holidays across the Tasman.

The New Zealand dollar strengthened against the United States dollar too, trading todlay at over 76c.