The kiwi rose to 72.38 US cents as at 8am in Wellington and earlier touched a week-high of 72.63 cents from 71.69 cents late yesterday. The trade-weighted index gained to 75.52 from 74.93.
The US dollar weakened overnight after Fed governor Lael Brainard said inflation was below the central bank’s target, suggesting little need to rush to hike interest rates while in the ongoing war of words between the US and North Korea, Trump tweeted that he would allow increased weapon sales to South Korea and Japan, while a diplomat from the North reportedly promised «gift packages» would be sent to the US. Meanwhile, Hurricane Irma, which has been upgraded to a category 5 storm, is headed for Florida. US financial markets re-opened after the Labor Day holiday on Monday.
«We were reminded that USD sentiment remains fickle, with dovish Fed comments and ongoing North Korean tensions weighing on the greenback,» said Con Williams, rural economist at ANZ Bank New Zealand.
The GDT price index rose 0.3 per cent to US$3,323 in the latest Global Dairy Trade auction, as gains in milk fats offset a decline in milk powders, meeting market expectations. Whole milk powder declined 1.6 per cent to US$3,100 a tonne.
With no local economic data scheduled, traders will be watching for the release of second-quarter gross domestic product in Australia, with growth expected to have accelerated to 0.9 per cent in the quarter for an annual pace of 1.9 per cent.
The kiwi rose to 90.51 Australian cents from 90.01 cents yesterday. It gained to 78.75 yen from 78.39 yen and rose to 60.75 euro cents from 60.20 cents. It traded at 55.54 British pence from 55.42 pence and rose to 4.7290 yuan from 4.6854 yuan.
Source: NZ Herald
Link: http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11917918
