26 May 2009

Source: stuff.co.nz

The New Zealand dollar edged steadily upward through most of the night in thin trading with markets in the United States and Britain on holiday.

By 8am the kiwi was buying US62.06c, up from US61.77c at 5pm yesterday and edging closer to the seven-month high US62.37c reached early on Saturday.

ANZ bank said that with the US and British markets taking Monday (local time) off, liquidity was thin on the ground.

"Remarkably'', the NZ dollar shrugged off news of US dairy subsidies and North Korea's surprise nuclear test yesterday.

The NZ dollar's position could merely reflect the fact the foreign exchange world disliked the US dollar, with most real money betting on further declines in the greenback.

"A busy local data week, with Thursday's budget being the main event, should provide the market with more clues as to whether the NZD is justified at current levels. Our view is clearly not,'' ANZ said.

For today, April trade data to be released at 10.45am would give markets something to focus on.

The NZ dollar also edged ahead against other major currencies.

By 8am the kiwi was buying 0.4429 euro from 0.4416 at 5pm, and was up to 58.84 yen from 58.54, while against the Australian dollar it lifted a little to A79.36c from A79.20c. The trade weighted index was up to 58.99 at 8am from 58.79 at 5pm.

- NZPA