The New Zealand dollar slipped against the greenback, while remaining in its recent trading range, as traders pondered the potential for concrete details of US monetary stimulus to be revealed at the Jackson Hole, Wyoming, central bankers retreat this weekend.
The kiwi dollar fell to 80.81 US cents from 81.05
cents at 5pm in Wellington yesterday.
The trade-weighted index fell to 72.74 from 72.86. The local currency has held in a range of about 80.50 cents to 82.20 cents since late July.
Federal Reserve chairman Ben Bernanke heads the speakers' list at Jackson Hole and may amplify on the minutes for the last Federal Open Market Committee minutes, which showed many members favour more stimulus for the US economy. Still, Bloomberg today cited economists saying investors may be disappointed as Bernanke may talk only in broad terms.
"Risk appetite remains fairly robust, but the market is slightly directionless as it awaits Friday's Jackson Hole meeting," said Kymberly Martin, a strategist at Bank of New Zealand.
"There is some speculation that Bernanke may disappoint expectations for him to signal new stimulus at the meeting."
