The New Zealand dollar paused near six-week highs against the US dollar in subdued trade on Monday, though analysts said it was primed to rise above the 64 US cent mark within the next 24 hours.
The Kiwi was aided by a broad weakening US dollar but traded in a narrow $0.6358-0.6381 range, capped below the six-week high of $0.6390 it hit on Friday.
The NZ dollar was trading at $0.6378/88. "It has been rather pedestrian," said ANZ National Bank senior dealer and technical analyst Mark Elliott. "It closed on a high on Friday so there was a bit of profit taking this morning but it has been edging higher as a function of the weak US dollar across the board."
The US dollar ground to a seven-month low against the yen and a near one-year low versus euro after comments from US Federal Reserve chairman Ben Bernanke that the Fed might soon pause in its interest rate tightening cycle.
Bernanke also said last week that the burgeoning US trade deficit and rapidly expanding Asian economies could have an affect the US dollar.
Comments
Comments are closed.