New Zealand Dollar Remains Well Supported

 
   By Rebecca Howard 
 

        WELLINGTON, New Zealand--The New Zealand dollar remains well supported, despite a more stable U.S. dollar.
        "NZD/USD remains well supported, finding its footing above the 100-day moving average. We'd be cautious on entering a short NZD/USD position just yet and would wait to see clear signs of waning momentum. Our hunch is that NZD/USD continues to outperform in the near-term," said BNZ FX strategist Raiko Shareef.
        In late Wellington trading, the New Zealand dollar was at US$0.7636, compared with US$0.7658 late Tuesday. It was at A$0.9697 versus A$0.9738. The Kiwi held up despite a narrower-than-expected February trade surplus and news that dairy giant Fonterra didn't lift its forecast payout to its 10,500 farmer shareholders in the current season due to volatile global dairy prices.
        The New Zealand Manufacturers and Exporters Association said Wednesday that the high Kiwi continues to "hurt our exporters and import competing producers" and the "continued high levels are not sustainable."
        It called on the Reserve Bank of New Zealand to "find a way out from between the rock of inflating house prices and the hard place of an overvalued currency" and said the expansion of macroprudential intervention offers a solution. It also said the central bank could cut the official cash rate this year if inflation remains low.
        Write to Rebecca Howard at rebecca.howard@wsj.com
        (END) Dow Jones Newswires

        March 25, 2015 00:50 ET (04:50 GMT)

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