Kiwi is half cent range under US82c

Monday 30th May 2011

The New Zealand dollar has moved in a range against the greenback between about US81.90c and US81.40c, since its Friday afternoon surge took it through a key resistance level.

From US81.69c at 5pm on Friday, the kiwi was buying US81.93c at 8am today, amid speculation that China's sovereign wealth fund, the Chinese Investment Corporation (CIC), is investing heavily in this country, including in government bonds.

It is thought the NZ dollar could be headed for its post-float high of US82.15c.

ANZ said the NZ dollar looked set to test the highs in coming days, although firm resistance and trade balance numbers that are forecast to be weak should cap pushes too far beyond US82c today. Holidays in Britain and the United States should keep the offshore session quiet.

Overnight Friday broadly disappointing US data had seen the greenback fall.

The kiwi also reached a 15-week high against the Australian dollar at A76.60c shortly after 5pm on Friday, then edged lower to A76.37c at 8am today.

After peaking at a four-month high near 0.5760 euro early on Friday afternoon, the NZ dollar has eased lower to 0.5716 at 8am today.

The euro rose against the US dollar, as European officials said Greece should be able to shoulder its heavy debt burden without restructuring.

The NZ dollar was little changed at 66.18 yen at 8am today, while the trade weighted index edged up to 70.60 from 70.57 at 5pm on Friday.

NZPA

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