NZ dollar little changed against major currencies on low liquidity, lack of news leading into Xmas

Tuesday 24th December 2013

The New Zealand dollar was little changed against major currencies today, reflecting low liquidity and a lack of new data leading in to the Christmas holiday period.

The kiwi slipped a touch to 81.82 US cents at about 4pm in Wellington, from 82.06 cents at 8am this morning. The trade-weighted index edged lower to 77.38 from 77.50 this morning.

The New Zealand dollar was little changed against most of the major currencies as traders vacate their desks for the Christmas holiday break. The kiwi traded in a narrow range of just 30 basis points against the greenback today with no major news or data to drive it and low liquidity.

The kiwi has left for an early Christmas, there has been absolutely no movement," said Peter Cavanaugh, client adviser at Bancorp Treasury. "Currency markets went into pre-Christmas mode at the end of last week."

The New Zealand dollar weakened slightly to 91.76 Australian cents at 2pm from 91.85 this morning after advancing about 15 percent this year as a strengthening local economy contrasts with a slowdown in Australia, boosting the lure of local assets.

The kiwi has drifted lower against the Aussie this week, reflecting that the outperformance of New Zealand is fully valued in the cross rate, said Bancorp's Cavanaugh.

The local currency was a touch lower at 59.80 euro cents at 2pm from 59.92 cents this morning and at 50.11 British pence from 50.19 pence. The local currency was little changed at 85.34 yen from 85.37 yen this morning ahead of the Bank of Japan's monthly report tonight.

BusinessDesk.co.nz

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