The New Zealand dollar traded in fairly narrow ranges today as the US dollar rallied against the yen.
By 5pm the NZ dollar was buying US51.22c, up from US51.01c at the same time yesterday. It rose to around US51.60c as the US and Asian stock markets rebounded.
Support
is seen at US50.50c and resistance at US52c.
The focus in the local market is on the National Bank business confidence survey tomorrow as an indicator of economic direction ahead of Friday's jobs summit.
The global economic story also continues to be a preoccupation of traders.
The US dollar touched a three-month peak against the Japanese currency today as risk aversion rose after US Federal Reserve Chairman Ben Bernanke warned that unless government efforts succeed in restoring financial stability the US recession may not end in 2009.
The safe-haven bid for the US currency came at a time when investors were looking to unwind long positions in the yen.
The NZ dollar was around a fortnight-high against the Japanese currency by today's local open, buying 49.81 yen and by the close it was 49.63 from 48.50 on Tuesday.
The kiwi was little changed, compared to yesterday's local close, against the Australian and European currencies at A78.90c and 0.3995 euro, from A79.11c and 0.4006 yesterday. The trade weighted index was 52.34 at 5pm from 52.16 yesterday.
- NZPA
