After rising during the weekend to within a whisker of US80c, its highest level against the greenback in three years, the NZ dollar retreated yesterday when Consumer Price Index data was weaker than expected.
That left investors asking if a period of profit-taking will ensue or if the dollar will
push through US80c and threaten its post-float high of US82.13c.
It was at US79.87c at 8am but drifted lower to US79.34c at 5pm, down from US79.99c on Saturday morning and little changed from US79.44c at 5pm on Friday.
"We keep our positive week-ahead bias and watch for a sustained move into the US80s as signalling an eventual test of the post-float high of US82.13c," Westpac said.
ANZ said the NZ dollar fell about 40 points when weaker than expected first-quarter inflation data pushed wholesale interest rates six to seven points lower.
Statistics New Zealand reported a 0.8 per cent rise in the CPI in the March quarter and a 4.5 per cent rise for the year to March. The median forecasts in a Reuters survey had been for a 1 per cent rise over the quarter and a 4.6 per cent gain on the year.
The NZ dollar was at €0.5519 at 5pm from €0.5488 at the same time on Friday, having risen to an eight-week high of €0.5545 early on Saturday. It was at A75.11c at 5pm from A75.43c on Friday and was at 65.70 from 66.28. The trade weighted index was 68.82 from 68.90.
- NZPA
