Late Change NZD/USD 0.8189 +0.0149 NZD/AUD 0.7682 +0.0008 NZD/JPY 62.1025 +0.9225 April 2013 Bond 2.815% +6.0 bps May 2021 Bond 4.535% +8.0 bps 10-Year U.S. Spread +218 bps unchanged 90-Day Bank Bill 2.71% +1.0 bp WELLINGTON (Dow Jones)--The New Zealand dollar was trading higher late Friday as risk appetite improved overnight following progress made in tackling the euro-zone sovereign debt crisis. Euro-zone leaders struck a deal after marathon discussions to implement a "voluntary" 50% reduction of Greece's debt held by private investors. "Risk appetite has roared away after announcements from the European Union summit yesterday," said Bank of New Zealand strategist Kymberly Martin. "In this backdrop the U.S. dollar underperformed all currencies - the Australian dollar and NZ dollar were amongst the strongest performers." However, the New Zealand dollar moved little during the Asian trading session after its overnight rise as the market digested the earlier moves. The Kiwi spent the day consolidating, said RBC Capital Markets currency strategist Sue Trinh. "I think we are now just waiting for further details about the deal that was struck by the Europeans yesterday so there is a bit of profit-taking setting in," she said before adding the market focus may now turn to the U.S. "The market focus is going to switch to the potential for further quantitative easing by the Federal Reserve. Certainly the rhetoric from core members (of the U.S. Federal Open Market Committee) has stepped up in that regard," Trinh added. Trinh puts dollar support at US$0.8000 with resistance initially at US$0.8215 and further resistance at US$0.8265 in the short-term. New Zealand government bonds fell while interest rate swaps moved higher as investors moved into risk assets following the new measures in Europe, a local bond trader said. -By Lucy Craymer, Dow Jones Newswires; 64-4-471-5990; lucy.craymer@dowjones.com

Source