NZ dollar in almost two-month high
Wed, 04 Jul 2012 9:49a.m.
The New Zealand dollar held near a two-month high after US factory orders beat expectations, helping lift equity markets and risk appetite.
The New Zealand dollar traded at 80.38 US cents just before 8am little changed from 80.40 cents at 5pm on Tuesday.
The trade weighted index eased back to 72.46 from 72.53.
In the US, the world's largest economy, factory orders surprised with a bigger-than-expected jump in May. A Commerce Department report showed that orders to factories rose 0.7 percent in May, surpassing expectations for a 0.1 percent advance.
That helped advance stocks on Wall Street, with the Dow Jones Industrial Average rising 0.6 percent.
The factory orders "gave hope that the slowdown is coming out the other side," said Stuart Ive, currency strategist at HiFX.
The local currency pared an earlier gain after prices of dairy products fell 5.9 percent in the latest GlobalDairyTrade auction, mirroring a broader decline in New Zealand's primary sector exports.
The results may weigh on the kiwi, Mr Ive said.
"The local market was expecting it to be a positive number."
The kiwi dropped to 78.16 Australian cents at 8am from 78.34 cents after the Reserve Bank of Australia left its target cash rate unchanged at 3.5 percent on Tuesday.
The New Zealand dollar was little changed on 63.76 euro cents from 63.81 cents and rose to 64.17 yen from 64.08.
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