Dollar slips as US holiday saps trading
The dollar edged lower in quiet trading with little new economic data released and many US traders out of the market as they take a long weekend holiday.
The New Zealand dollar edged lower in quiet trading with little new economic data released and many US traders out of the market as they take a long weekend holiday.
The kiwi slipped to 77.54 US cents at 8am in Wellington, from 77.87 cents at 5pm yesterday. The trade-weighted index weakened to 76.92 from 77.01 yesterday
The New Zealand dollar started the week higher after the key US non-farm payrolls report at the end of last week showed employers in the world's largest economy added less jobs than many traders expected, weighing on the greenback. However with a lack of new economic data overnight and many US traders enjoying a long-weekend holiday heading into the Nov. 11 Veterans Day public holiday, the market struggled for direction.
"It has been a relatively quiet 24-hours of trading for the NZD/USD," Kymberly Martin, Bank of New Zealand senior market strategist, said in a note. "It was never looking to be an exciting night, with little on the data agenda, and the US likely in long-weekend mode ahead of today’s Veterans Day holiday.
"In the absence of significant data releases or news flow the US dollar index sidled sideways overnight, before making a push higher in the early hours of this morning."
The New Zealand dollar has support at 77 US cents and faces resistance at 77.90 cents, BNZ said.
Trading today is also expected to be quiet, with only electronic card transaction data scheduled for release. Reserve Bank deputy governor Grant Spencer is scheduled to speak at the Payments NZ conference in Auckland, but that is unlikely to be market moving, BNZ's Martin said.
The New Zealand dollar edged up to 89.89 Australian cents from 89.78 cents yesterday ahead of an Australian business confidence survey today.
The local currency was little changed at 88.97 yen from 88.95 yesterday ahead of the release of Japanese current account data.
The kiwi slipped to 48.88 British pence from 48.97 pence yesterday and was little changed at 62.36 euro cents from 62.38 cents.
(BusinessDesk)
Tina Morrison
Tue, 11 Nov 2014
Tue, 11 Nov 2014
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Dollar slips as US holiday saps trading
42962