You are using an older browser version. Please use a supported version for the best MSN experience.

NZ dollar falls to three-week low

NZ Newswire logoNZ Newswire 5/04/2017 Jonathan Underhill

New $10 notes. © Mark Tantrum/Getty Images New $10 notes. The New Zealand dollar fell, touching a three-week low on Wednesday.

Traders were reluctant to push the currency higher ahead of US President Donald Trump's summit with his Chinese counterpart Xi JinPing and US non-farm payrolls data on Friday.

The kiwi traded at US69.72c at 5pm in Wellington, having touched a three-week low of 69.65c overnight, from 69.87c late Tuesday.

The local currency barely budged after the results of the GlobalDairyTrade auction overnight showed the second straight gain in prices, with whole milk powder rising 2.4 per cent.

That was followed by the release of the ANZ Commodity Price Index today, which rose 0.4 per cent in March, led by meat and wool.

Traders said that gains in commodity prices aren't seen stoking the kiwi at a time the Reserve Bank governor Graeme Wheeler's preference is to keep its key interest rate at a record low.

"The kiwi really hasn't found a sustained 'bid' since the Reserve Bank (monetary policy) statement in February, when Wheeler suggested we will see just one hike between now and 2020," said Nick Tvedt, a currency dealer at HiFX.

Mr Tvedt said there is support for the New Zealand dollar if it falls as low as US69c.

The kiwi dollar has fallen from as high as US73.74c in early February.

The latest QV House Price Index released Wednesday, shows that while national property values increased on average by 12.9 per cent over the year to March 31, the increase in the last three months was just 0.6 per cent.

The local currency traded at A92.07c from 92.13c Tuesday. It traded at 77.10 yen from 77.14 yen and fell to 4.7971 Chinese yuan from 4.8086 yuan. It declined to 65.27 euro cents from 65.45 cents and was little changed at 55.98 British pence from 56.01 pence.

image beaconimage beaconimage beacon