WSJ:New Zealand Dollar Finding New Level, Supported at US$0.8003
By Rebecca Howard
WELLINGTON, New Zealand--The New Zealand dollar fell late Friday, adding to losses overnight after the country's central bank governor said Thursday it was prepared to take more steps to cool an appreciating Kiwi.
However, although the Kiwi was lower, it has stuck to a fairly tight range and "seems to be settling into a new level," said Chris Hunter, corporate dealing manager at Western Union Business Solutions. "While we have seen the occasional spike and dip over the week, we have maintained a very stable level on average."
The Kiwi largely overlooked better-than-expected trade and business confidence data Friday.
"It confirms that we are taking some fairly significant steps toward economic recovery. But it didn't really move the market as there are much bigger factors at play," said Mr. Hunter.
The New Zealand dollar was last at US$0.8078 from US$0.8117 late on Thursday, while it was at A$0.8380 from A$0.8384.
Mr. Hunter said the Kiwi now has support around US$0.8003 and resistance at US$0.8162, and he expects it to open around the same level on Tuesday after a three-day holiday weekend in New Zealand.
He said the main focus next week will be on the Reserve Bank of Australia rate decision followed by the U.S. jobs data. "The markets may just sit back and wait for that data," he said.
New Zealand government bonds due April 2015 fell 5.5 basis points to 2.575% while April 2023 bonds fell 4.5 basis points to 3.575%.
