The New Zealand dollar traded in a range just above US73c as currency markets awaited the Reserve Bank's Monetary Policy Statement this morning.A pause in the tightening cycle, which keeps the official cash rate at 3 percent, is fully priced in the market
The New Zealand dollar traded in a range just above US73c as currency markets awaited the Reserve Bank's Monetary Policy Statement this morning.
A pause in the tightening cycle, which keeps the official cash rate at 3 percent, is fully priced in the market and traders are looking for some clues about how long the pause lasts.
Westpac senior currency strategist Imre Speizer said in a market brief this morning that the New Zealand dollar was unlikely to breach the major US73.95c level today, with major support around US72.60c.
"That's assuming no surprises from the RBNZ meeting this morning, a one or two-meeting pause and balanced statement expected," he said.
The kiwi surged against the yen yesterday to its highest level in five weeks, after the Bank of Japan intervened for the first time in six years today to buy US dollars and sell yen.
US equities were slightly firmer this morning (NZ time) after earlier falling on a weak New York Federal Reserve manufacturing survey.
Mr Speizer said the kiwi ranged between US73.00c and US73.60c during the offshore sessions.
By 8am it had eased to US73.12c from US73.19c at 5pm yesterday. It made further ground against the Japanese currency to be at 62.57 yen at 8am from 62.17 at 5pm, but slipped against the Australian dollar to A77.90c from A78.07c.
The trade weighted index was at 67.35 at 8am from 67.49 at 5pm.
