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Dollar little changed as next poll awaited

NZ Newswire logoNZ Newswire 13/09/2017

The New Zealand dollar was little changed on Wednesday versus the greenback and the Australian dollar ahead of the 1News Colmar Brunton poll on Thursday after jumping Tuesday when the Newshub-Reid Research poll showed National back in the lead.

The kiwi dollar was trading at US72.87c as at 5pm in Wellington from 72.88c at the start of the day. The kiwi traded at A90.80cents from 90.24 cents before the poll yesterday.

Thursday evening's Colmar Brunton poll will be keenly watched because it was the same poll last week that surprised markets by putting Labour ahead on 43 per cent to National's 39 per cent.

Tuesday's Reid Research poll reversed the rankings, putting National on 47.3 per cent to Labour's 37.8 per cent.

The New Zealand dollar has fallen about 5 per cent against the Australian dollar since Jacinda Adern replaced Andrew Little as Labour leader on August 1 although traders say the cross-rate had already found strong support at around A89.70c from exporters and market participants exiting short positions on the cross rate (ie betting the Aussie would rise vs the kiwi).

"We've travelled a long way down on this cross (rate) only for political reasons and there's a point where enough's enough," said Martin Rudings, a senior dealer at OMF.

"Orders were absorbing the trades and then we had a poll with National ahead and boom. There's a chance we've put a bottom in place in the short term," he said.

The kiwi didn't move much on Wednesday after figures showed the food price index rose 0.2 per cent in August as butter hit a record high of $5.39 per block.

The kiwi rose to 80.26 yen from 79.01 yen. It gained to 60.81 euro cents from 60.43 cents and rose to 4.7543 yuan from 4.7272 yuan. It traded at 54.76 British pence from 54.83 pence.

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