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Kiwi range bound, looking for catalysts

NZ Newswire logoNZ Newswire 30/03/2017 Rebecca Howard

A dearth of domestic data is keeping the New Zealand dollar in a tight range and while conditions may be building for it to break out, any catalysts are likely to come from offshore.

The kiwi dollar was trading at US70.26c as at 5pm in Wellington on Thursday versus US70.33c as at 8am and 70.07c late Wednesday.

"Range trading is the main thing that is happening. We are getting lower highs and higher lows so maybe the conditions are building for a breakout of this range at some stage but for now the catalysts are just not there," said ANZ Bank New Zealand senior economist Philip Borkin.

He noted it's been a quiet week for domestic data and that's likely to continue with the March quarter consumer price inflation data not due until April 20.

"We are still waiting for a catalyst and I don't think it's going to be a domestic one. It's a case of watching the globe," he said.

The kiwi was trading at 56.44 British pence unchanged from Wednesday, after getting a lift from UK Prime Minister Theresa May officially triggering Britain's exit from the European Union.

The local currency gained to 65.33 euro cents from 64.78 euro cents.

The kiwi dollar was at A91.64c versus 91.65c and rose to 78.14 yen from 77.94 yen. It increased to 4.8435 Chinese yuan from 4.8286 yuan on Wednesday.

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