The New Zealand dollar rebounded on Monday as markets proved comfortable with the likely cost to the country from Saturday's magnitude 7.1 earthquake which caused widespread damage to its second-largest city. The NZ dollar initially dipped nearly a quarter of a cent in early trade to $0.7178, but soon bounced back to a one-month high at $0.7232.
The earthquake was New Zealand's most devastating in 80 years with a damage bill initially put at about NZ$2 billion, but the longer term effect was seen as limited, leaving investors to look at broader market themes. Near term, the kiwi is seen supported at around $0.7165, and below that $0.7130. Resistance was seen at around $0.7250. The Australian dollar was up at $0.9168, having touched a one-month peak at $0.9177 in the wake of Friday's upbeat US jobs data. Technical analysts at NAB see the upside as the line of least resistance for now.