15 Apr 2015

New Zealand dollar in for volatile trading

3:56 pm on 15 April 2015

The New Zealand dollar is in for another bout of volatile trading, kicked off earlier this morning, with some weaker-than-expected United States retail sales figures.

That caused the Kiwi to jump, almost one cent against the US dollar, to 75.51 US cents, and half a cent against the Australian dollar, to just 98.83 Australian cents.

It will be a busy 24 hours on the currency market, with fresh Chinese economic data to be released later this afternoon.

On the local front, New Zealand's Reserve Bank governor is about to give a speech on the housing market, followed by the global dairy trade auction and yet more US economic data, overnight.

Senior foreign exchange strategist at ANZ Sam Tuck said the Kiwi was more likely to fall in line with market expectations.

And the currency had been bouncing around since the start of this month's long holiday weekend, when some key American jobs data disappointed, driving the New Zealand currency to a post-float record of nearly one dollar Australian, on Easter Monday.

But it fell sharply the following day, when the the Australian Reserve Bank failed to cut its short-term interest rates, and it's been on a downward trend ever since, particularly earlier this week, when Chinese trade data also failed to meet expectations.

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