WELLINGTON, New Zealand--The New Zealand dollar was trading lower late Monday after selling against the Australian dollar also pushed it down against the U.S. dollar.
By Lucy Craymer
The local dollar had been due for consolidation against the Australian dollar after breaking A$0.97000 to make a new high last week, said Bank of New Zealand currency strategist Raiko Shareef.
In late Wellington trading Monday, the New Zealand dollar was at US$0.7516, down from US$0.7533 late Friday. The NZ dollar was at A$0.9594 compared with A$0.9648 on Friday.
As investors sell the New Zealand dollar in favor of the Aussie the greater supply of the currency will see it soften across the board.
ANZ Senior FX manager Sam Tuck said the New Zealand dollar is now likely to take direction from U.S. Federal Reserve Chairwoman Janet Yellen's testimony to congress this week.
"I am biased to the New Zealand dollar strengthening because we are in a global environment where risk factors are receding," said Mr. Tuck. He added that global growth was underwhelming and with global commodity prices bouncing, or at least stabilizing in 2015, the New Zealand dollar should remain supported.
Locally, Fonterra Co-Operative Group is expected later this week to release a forecast on what it will pay its farmer this season for milk solids. Expectations are growing that payouts could rise following improvement in the global dairy trade. The ANZ Business Confidence Survey and overseas merchandise trade data are also due this week.
Write to Lucy Craymer at lucy.craymer@wsj.com, @lucy_craymer
(END) Dow Jones Newswires
February 22, 2015 23:10 ET (04:10 GMT)
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