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Kiwi rises from four-month low vs Aussie

NZN 13/02/2017 Rebecca Howard

The New Zealand dollar has bounced from a four-month low against the Australian dollar as some investors find the levels attractive after a sharp sell-off last week.

The kiwi rose to 93.92 Australian cents as at 5pm (1500 AEDT) on Monday in Wellington from 93.55 Australian cents at 8am and A93.66 cents in late New York trading on Friday.

New Zealand's currency was still 1.2 per cent lower against its trans-Tasman counterpart from a week earlier as rising commodity prices and a rosier economic outlook from the Reserve Bank of Australia stoked demand for the Aussie dollar.

"After such a hard sell-off last week, it's not surprising it's attracted some buying interest at these levels," said OMF private client manager Stuart Ive.

The New Zealand dollar fell sharply last week after New Zealand's central bank indicated rates would remain on hold for some time to come. The kiwi traded at 72 US cents from 71.99 cents on Friday in the US.

Ive said local traders largely overlooked news that retail spending rose a seasonally adjusted 2.7 per cent in January after two months of zero movement, the biggest monthly gain since December 2006, with increases across all six industries and said Tuesday's food price index data was unlikely to have much impact.

The local currency traded at 57.63 British pence compared with 57.49 pence in Asia on Friday and rose to 67.80 euro cents from 67.59 cents. It increased to 4.955 Chinese yuan from 4.9477 yuan.

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