14 Feb 2012

NZ dollar expected to decline this week

10:10 am on 14 February 2012

A currency analyst says flow-on effects from Greece and US economic data may see the New Zealand dollar slip further this week.

The Greek parliament on Monday approved an austerity bill to secure a second bailout from the European Union and International Monetary Fund.

The NZ dollar slipped to US82.5 cents late last week, its lowest level since early February.

Senior dealer at HiFX Dan Bell says the dollar has room for consolidation, given it has gained about 10% on the lows of about US75 cents in late November early December.

He says even if there are further positive developments from Greece, economic data from the US this week could have an impact.

Mr Bell says US retail sales, manufacturing and inflation data is due out this week and with indications the economy is doing better than expected, more positive data may see the Greenback pick up a bit.