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NZ dollar rises above US73 cents

NZ Newswire logoNZ Newswire 27/06/2017

The kiwi traded at 95.83 Australian cents at 5pm in Wellington from 95.55 cents on Friday. © Getty Images The kiwi traded at 95.83 Australian cents at 5pm in Wellington from 95.55 cents on Friday. The New Zealand dollar rose above US73 cents on Tuesday and may be a stand-out performer in the face of a weak greenback on the basis of the nation's relatively high interest rates and sturdy economic growth.

The kiwi was trading at US73.01c as at 5pm in Wellington from 72.83c Monday. The trade-weighted index rose to 78.70 from 78.56.

Among recent data that has helped lift sentiment for the kiwi dollar, exports rose to a three-year high in May in the face of rising dairy prices, while farmer confidence and investment intentions jumped to a record high in the second quarter, based on a Rabobank survey.

The Reserve Bank has signalled no increase in interest rates for the foreseeable future but that keeps the official cash rate 50 basis points above the Federal Reserve's key rate and a quarter point above the Reserve Bank of Australia's cash rate.

"The kiwi is going to continue to outperform," said Mitchell McIntyre, a dealer at HiFX.

While there is strong resistance at US73.50c, "given the momentum, I wouldn't be surprised if we had a look at 74" US cents.

He said reports that China plans to curtail its domestic iron ore and coking coal production had given the Aussie dollar a lift late in the day and the kiwi had risen along with it.

Investors are now looking ahead to Federal Reserve chair Janet Yellen's speech in London overnight, where the topic is global economic issues and where investors will be listening for any hint of a third US rate hike this year.

On Thursday, the final estimate for US first-quarter gross domestic product is expected to confirm the world's biggest economy grew 1.2 per cent.

The kiwi traded at A96.07c from 96.08c. The kiwi advanced to 57.35 British pence from 57.14 pence and rose to 81.63 yen from 81.04 yen. It rose to 4.9956 yuan from 4.9782 yuan and gained to 65.25 euro cents from 65.07 cents.

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