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Kiwi falls against Aussie on trade news

NZ Newswire logoNZ Newswire 2/02/2017 Rebecca Howard

© Rex Images The New Zealand dollar has fallen against the Aussie dollar after Australia posted a record trade surplus in December, stoking optimism about the outlook for economic growth across the Tasman.

The kiwi dollar fell to 95.52 Australian cents as at 5pm on Thursday in Wellington from A96.10c late on Wednesday. The local currency edged up to US72.98 cents from US72.62c.

Australian posted a seasonally adjusted trade surplus of $A3.5 billion in December, the Australian Bureau of Statistics said on Thursday.

The kiwi "came off quite significantly against the Aussie," said ANZ Bank senior economist Philip Borkin.

"It was a 'mammoth' trade surplus over there. The rebound in commodity prices over there is doing wonders for the Australian economy."

Overall it was a fairly "whippy, roller coaster day," with the kiwi reacting to some headlines on the New Zealand Herald about a possible tuberculosis outbreak on a dairy farm in the Waikato.

It initially fell but then rebounded when it became clear it was a minor, contained incident and had happened before, Mr Borkin said.

On Thursday, the kiwi was at 5.0180 yuan from 4.9939 yuan and at 67.59 euro cents from 67.28c. It traded a 57.59 British pence from 57.75p late Wednesday and at 82.23 yen from 82.18 yen.

The trade-weighted index was at 79.35 from 79.20.

New Zealand's two-year swap rate rose 2 basis points to 2.40 points while the 10-year swaps rose 4 basis points to 3.57 per cent.

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