WSJ:New Zealand Dollar Higher Vs Greenback Late, Helped By Stronger Australian Dollar
WELLINGTON--The New Zealand dollar was trading higher against its U.S. counterpart late Thursday, largely bolstered by a stronger Australian dollar.
"The Aussie dollar is well supported...it's more Aussie dollar strength that's driving it (the NZD/USD) at the moment," said HSBC NZ Chief Manager Daniel Brdanovic.
The Australian dollar is currently at 11-week highs after the U.S. dollar waned in Asia after falling overnight on improved corporate earnings, rising commodity prices and a lack of negative news out of Europe.
"There is nothing out there that is scaring the market," and it is of the view that further quantitative easing is not far away, Mr. Brdanovic said. "I think everyone is hanging their hats on that."
He added, however, that the Kiwi will struggle to get beyond resistance around US$0.8040-US$0.8060 as things "around here or slightly above here are beginning to look slightly toppy." He placed support around US$0.7980.
Government bonds ended unchanged in a quiet session. A local bond trader said, however, that a government bond tender was well bid. The government sold NZ$100 million of March 2019 bonds and NZ$150 million of the April 2023 issue. Bids totaled NZ$430 million and NZ$185 million, respectively
