NZ dollar holds at 65USc 'Goldilocks' level in holiday week
The kiwi was at 65.15USc at 8am in Wellington.
The New Zealand dollar held around its 65USc support level overnight, heading into a shortened trading week when US markets will be on holiday.
The kiwi was at 65.15USc at 8am in Wellington, from 65.14USc at 5pm yesterday. The trade-weighted index was little changed at 70.98 from 71.01 yesterday.
Currency markets may be illiquid this week as traders take extended leave around the US Thanksgiving holiday on Thursday and ahead of key US economic data on payrolls next week in the leadup to December's Federal Reserve meeting, where interest rates are expected to rise. The kiwi hovered around 65USc overnight, which Prime Minister John Key has previously described as the "Goldilocks" level – neither too high nor too low.
"There are few obvious catalysts for the NZD/USD in the days ahead, in the US Thanksgiving curtailed week," Bank of New Zealand senior market strategist Kymberly Martin said in a note. "In the backdrop of a marginally stronger US dollar, the New Zealand dollar has been the weakest performing currency over the past 24 hours. However, it has managed to find support at the 0.6500 level."
The kiwi will likely be supported on any dip to 64.30USc and faces resistance at 66USc, Ms Martin said. BNZ expects the kiwi to weaken to a trough of 60USc in late 2016 as the US hikes interest rates.
Tonight, the US publishes third-quarter gross domestic product data, and a consumer confidence survey.
The New Zealand dollar slipped to 90.51Ac from 90.69Ac yesterday. Reserve Bank of Australia governor Glenn Stevens is scheduled to deliver a speech titled 'The Long Run' to the Australian Business Economists annual dinner in Sydney tonight.
The kiwi slipped to 80.02 yen from 80.21 yen yesterday as Japan had a public holiday yesterday.
The local currency edged up to 43.05 British pence from 42.93 pence yesterday, was little changed at 61.34 euro cents from 61.36 cents, and was at 4.1624 yuan from 4.1606 yuan.
(BusinessDesk)
Tina Morrison
Tue, 24 Nov 2015
Tue, 24 Nov 2015
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NZ dollar holds at 65USc 'Goldilocks' level in holiday week
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