The New Zealand dollar encountered a volatile session yesterday, swinging around 53USc before closing down at 52.90USc.
"It was a whippy day. On its move towards the 52.80c area a bit of selling kiwi, buying aussie dollar went on," a currency dealer said.
"However, there were good bids at 52.80c. The market caught itself a bit short down there. Following the Australian trade data we popped up to the top of the range around 53.10c."
However late in the day it appeared "someone has sold a good chunk of kiwi dollars. We have fallen all the way back down to the bottom of the range around 52.90c. There's quite a bit of Hong Kong selling even at these low levels."
The Australian Bureau of Statistics reported that Australia's balance of trade deficit was down at $A1.5 billion in May, from $1.9 billion a month earlier. The Australian dollar locally finished higher at 66USc.
On the crossrate the kiwi was weaker at 80.12Ac, from 80.79Ac.
The Reserve Bank left the official cash rate unchanged at 4.50 per cent. In the debt market, following the failure of an RB open market operation on Tuesday, overnight cash remained higher at 4.65 per cent.
The bonds were mainly one point weaker across the time curve after US treasuries had ended mixed. - NZPA
Volatile kiwi ends on lows
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