New Zealand Dollar Down Late Due to Broad U.S.Dollar Strength

 
   By Lucy Craymer 
 

        WELLINGTON--The New Zealand dollar was slightly lower Wednesday due to broad U.S. dollar strength in overnight trading.
        The U.S. dollar gained after data showed the U.S. economy grew at 5% in the third quarter, the fastest pace in 11 years from July through September. This bolstered the market's expectations for higher interest rates.
        ANZ Senior Trader Alex Sinton said the New Zealand dollar was lower due to the U.S. dollar strength but he emphasised that volumes in the market were lower due to the country heading into the holiday period.
        In Wellington trading Wednesday, the New Zealand dollar was at US$0.7726 versus US$0.7738 late Tuesday. It was at A$0.9522 compared with A$0.9532 late Tuesday.
        Alex Hill, head of corporate FX at NZForex said the New Zealand dollar looks higher than it should be against the Australian dollar and will come under pressure if the Australian dollar bounces off key support against the U.S. dollar.
        However, Mr. Hill said if the Australian dollar closes below US$0.8080 or even US$0.8065 over this Christmas and New Year period then "the Aussie is in big trouble" and the New Zealand dollar could move higher against the Australian dollar.
        Write to Lucy Craymer at lucy.craymer@wsj.com, @lucy_craymer
        (END) Dow Jones Newswires

        December 23, 2014 20:33 ET (01:33 GMT)

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