Dollar higher thanks to weak Kiwi

Dollar higher thanks to weak Kiwi

The Australian dollar is stronger against the greenback after statements from New Zealand’s central bank led currency traders to move their money across the Tasman.

The Australian dollar was trading at $US1.0365, up from $US1.0329 on Tuesday.

ANZ foreign exchange strategist Andrew Salter said the local currency received a boost after Reserve Bank of New Zealand (RBNZ) governor Graeme Wheeler said that institution was prepared to intervene to push down the value of the Kiwi currency.

‘‘The speech was interpreted by the market as bringing the RBNZ as a little bit closer to intervention than previously thought,’’ he said.

Mr Salter said the Australian dollar rose sharply against its New Zealand counterpart following Mr Wheeler’s statements, which provided support for the local currency against the US dollar.

He said the local currency would trade in a narrow range ahead of the release of the minutes of the January meeting of the US Federal Reserve’s Federal Open Market Committee.


The Fed will release the minutes overnight on Wednesday.

‘‘That will be a big mover and we are just treading water until then,’’ Mr Salter said.


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