NEW YORK: The New Zealand dollar fell from its highs against the Australian dollar, touching a week low, as some investors took advantage of the gains to sell the local currency.
The kiwi touched 95.75 Australian cents and was trading at 95.85 cents at 8am in Wellington, from 96.43 cents at 5pm on Friday. The local currency was trading at 75.20 US cents from 75.18 cents at the New York close and 75.31 cents on Friday.
The New Zealand dollar has been steadily gaining ground against the Aussie this year as investors favour the outlook for the local economy, where interest rates are expected to remain on hold at 3.5 per cent, compared with a weaker outlook in Australia where record low interest rates of 2.25 per cent may decline further. Still, some investors are betting the kiwi’s rise to a post-float high of 97.07 Australian cents last Thursday night may not be warranted.
“The strong reversion after Thursday’s new post-float high indicates reluctance to drive this cross too much further at this stage,” ANZ Bank New Zealand senior FX strategist Sam Tuck and agri economist Con Williams said in a note.
