NZ dollar mixed ahead of long weekend

The New Zealand dollar had a mixed session today after news of a financial lifeline for Greece and ahead of non-farm payrolls data in the United States tonight.

The New Zealand financial markets were generally quiet today ahead of a long holiday weekend.

The NZ dollar was at US81.45c at 5pm from US81.63c at 8am and US81.28c at 5pm yesterday. The local currency rose to a post-float high earlier this week.

"There was support at US81.40c and resistance at the US81.85c to US81.90c level. The euro was stronger through our session and the Greece bailout news meant risk was back on," said Murray Hindley, chief foreign exchange dealer at ANZ.

Investors are waiting for non-farm payrolls data in the US tonight and they are also waiting to see if the Reserve Bank of New Zealand has anything to say about the rise of the NZ dollar in its monetary policy statement next week.

New Zealand has the Queen's Birthday holiday on Monday.

Overnight Moody's Investors Service said there was a very small but rising risk of a short-lived default by the US if there was no increase in that country's statutory debt limit in coming weeks.

That boosted the euro which was also helped by a report that euro zone officials had agreed in principle on a new three-year adjustment programme for Greece that would involve increased external funding.

A recent spate of disappointing US data has darkened the US economy's outlook and made the greenback less appealing than higher-yielding currencies. The data coincides with worries about the end of the Federal Reserve's second round of quantitative easing later this month.

The NZ dollar was down to 0.5624 euro at 5pm from 0.5657 at the same time yesterday and was at 65.77 yen from 65.78 yen yesterday. Against the Australian dollar, it was at A76.28c at 5pm from A76.49c yesterday.

The trade weighted index was 70.11 from 70.18 yesterday.

- NZPA