WSJ:New Zealand Dollar Weaker Late; Equity Markets Weigh
By REBECCA HOWARD
WELLINGTON--The New Zealand dollar was trading lower late Friday, weighed by weaker equity markets in the U.S. overnight and in Asia as investors became less sure that a new round of quantitative easing is on the way in the U.S.
"On that basis (weak equity markets) and on the broader risks around Jackson Hole," it is starting to falter, said HiFX Trading Director Mike Hollows.
He said, however, he expects the New Zealand dollar to trade in a narrow range until there is some clarity from the Federal Reserve. He pegged support the Kiwi at US$0.8105 and resistance at US$0.8145.
He said markets will also be watching for any news after meetings between the leaders of Germany and France with Greek Prime Minister Antonis Samaras. "There has been ongoing speculation that they will soften their approach to Greece...but we will wait and see what happens," he said.
Government bonds ended slightly higher on some demand for long end bonds, a local trader said. "Otherwise, markets were very quiet."