Late Change NZD/USD 0.8027 -0.0106 NZD/AUD 0.7702 -0.0018 NZD/JPY 64.795 -0.655 April 2013 Bond 3.165% -2.5 bps May 2021 Bond 4.93% -5.5 bps 10-Year U.S. Spread +209 bps +5.0 bps 90-Day Bank Bill 2.67% +1.5 bps WELLINGTON (Dow Jones)--The New Zealand dollar was trading sharply weaker late Monday, weighed by risk aversion as investors worry about possible contagion from the Greek debt crisis. Westpac Bank Senior Market Strategist Imre Speizer said the Kiwi touched US$0.8009 mid-way through the session, as the U.S. dollar gained ground on heightened risk aversion. Speizer said Westpac "maintains bearish biases for the next week and month" on the Kiwi. He noted that a range of US$0.8000 to US$0.8200 has prevailed since June 15 "and a break outside of this is required to signal direction." He expects the break to be lower due to "potential for a significant U.S. dollar rally post QE2." He said the markets are focused on Greece and the upcoming vote. Locally, Speizer said the New Zealand dollar didn't react to Monday's news that New Zealand's trade surplus narrowed in May and the only other data of note in the week is Thursday's National Bank of New Zealand's business outlook survey. The surplus shrank to NZ$605 million in May from April's revised NZ$1.15 billion, Statistics New Zealand said Monday. However, stripping out the oil spike, aircraft parts and a fall in the volume of dairy exports, "the trend for solid trade surpluses remains intact," said ASB economist Jane Turner. Government bonds ended stronger, largely tracking a move in the Australian market, a local bond trader said. "It was really an offshore move, there is very little happening locally," he said. -By Rebecca Howard, Dow Jones Newswires; 64-4-471-5990; rebecca.howard@dowjones.com

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