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NZ dollar vs US dollar -
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After recovering on Monday from a bout of risk aversion triggered by Dubai's financial woes, the New Zealand dollar fell away again overnight.
The kiwi fell to US71.42 cents by 8am from US72.11 cents at 5pm on Monday. This was despite the greenback slipping against the euro as easing concerns about Dubai's debt problems and an upbeat United States regional business activity report diminished the US currency's safe-haven allure.
In its morning briefing, ANZ said that while the New Zealand dollar had not been able to stay above US72 cents, it had not backed off much overnight.
Having survived yet another risk aversion event, at this point, the New Zealand dollar should find itself garnering support from across the Tasman, ANZ said.
The Reserve Bank of Australia was expected to lift Australian interest rates 25 basis points to 3.75 percent at 4.30pm (NZT) on Tuesday, and that should provide support indirectly to the New Zealand dollar.
At Tuesday's local open, the kiwi was down to AU78.15 cents from AU78.49 cents at 5pm.
The New Zealand dollar also fell to 0.4760 euro and 61.58 yen at
8am, from 0.4784 euro and 62.47 yen at the local close. The trade
weighted index was down to 63.45 at 8am from 63.92 at 5pm.
