WELLINGTON - The stronger than expected retail sales figures for June reinforced the kiwi dollar's bullish tone set in overnight trading on Tuesday.
Dealers were cautious as to whether the currency had truly turned the corner and they were reluctant to draw too much from the data, a second tier indicator prone to revision.
The currency's performance was nevertheless impressive, spiking sharply overnight along with the Australian dollar, based on a stronger commodities-price scenario.
By the close at 5 p.m. it was at $US0.5352/59 from $US0.5278/85 at Tuesday's close, after spiking up to $US0.5378 in the afternoon.
In London last night it had eased to $US0.5347. Aussie/kiwi also fared well, firming half a cent to $A0.8159/76.
"Has sentiment changed? That's a tough one with employment data due today," said one dealer.
Today's June quarter employment data is not expected to pose any threat to the market's inflation/growth expectations, which are generally modest.
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