New Zealand Dollar Higher, Boosted by U.S.Equity Market Strength

 
   By Lucy Craymer 
 

        WELLINGTON, New Zealand--The New Zealand dollar is trading higher late Thursday, boosted early in trading by a buoyant U.S. equities market as risk appetite improved.
        OM Financial Private Client Manager Mark Johnson said the New Zealand dollar was under pressure in overnight trading but bounced higher as U.S. equities rallied after an upbeat labor report. The report from Automatic Data Processing showed that U.S. private payrolls increased 241,000 in December. Economists surveyed by The Wall Street Journal expected a gain of 250,000. Investors said the report was consistent with an improving labor market.
        Mr. Johnson added that the New Zealand dollar is likely to remain in a tight range with China PMI and CPI data due out Friday followed by the U.S. nonfarm payrolls likely to be key drivers.
        In Wellington trading Thursday, the New Zealand dollar was at US$0.7792 versus US$0.7726 late Wednesday. It was at A$0.9608 compared with A$0.9522 late Wednesday.
        Westpac's senior currency strategist Sean Callow said the New Zealand dollar is getting ahead of itself against the Australian dollar after rising strongly against its Australian counterpart.
        "Such weakness [in the Aussie] remains a buy in our view," Mr. Callow said. He said he thinks the currency's fair value is nearer NZ$1.08-1.09, especially as prices of iron ore--Australia's top export--show signs of stabilizing.
        Write to Lucy Craymer at lucy.craymer@wsj.com, @lucy_craymer
        (END) Dow Jones Newswires

        January 08, 2015 00:13 ET (05:13 GMT)

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