The New Zealand dollar rose against the Australian dollar on Thursday after weak economic data across the Tasman but was little changed against the greenback ahead of the European Central Bank’s monetary policy statement.
The kiwi was trading at A90.12c as at 5pm versus 89.93c at 8am and 90.52c late Wednesday. It was at US72.02c from 72.25c.
Australia posted a seasonally adjusted trade surplus of A$460 million in July, lower than analysts’ expectations of a surplus of A$1 billion, and retail sales were flat in July.
The slightly weaker data meant the Aussie came off its highs and “we benefited from that. The kiwi/Aussie cross has rallied up a bit from its lows,” said Martin Rudings, senior dealer foreign exchange at OMF in Wellington.
However, “essentially we are treading water until the ECB tonight. Markets are waiting for that”, he said.
Investors are waiting for any clues on what the ECB is going to do about their 2.3 trillion euro bond-buying program, known as quantitative easing and what ECB President Mario Draghi has to say about the euro.
The kiwi remained weak against the Canadian dollar after the Bank of Canada unexpectedly hiked its benchmark rate by 25 basis points to 1 per cent and Mr Rudings said it won’t see any relief in the near term.
“I’d say the Canadian dollar probably has a couple more days of doing better on the crosses. It was a bit of shock and caught the market off guard a bit,” he said.
The kiwi was trading at 88.07 Canadian cents as at 5pm from 89.57c Wednesday. It was unchanged at 78.53 yen and eased to 60.39 euro cents from 60.64c. It traded at 55.20 British pence from 55.43 pence and declined to 4.6967 yuan from 4.7226 yuan.