Kiwi holds on military worries

The New Zealand dollar stuck to a tight range as global sentiment was weighed down by the threat of imminent US military action in Syria.

The kiwi traded at US73.58c at 5pmyesterday from US73.53c at 8am and US73.46c late on Wednesday. The trade-weighted index edged up to 75.43 from 75.28.

New Zealand’s currency spent the local trading session in a 24-basis point range after investors were rattled by US President Donald Trump declaring that missiles “will be coming” in Syria and that the White House said “all options are on the table” in response to a suspected chemical weapons attack in Syria, according to the BBC. UK Prime Minister Theresa May was ready to give the go-ahead for Britain to take part in action, the BBC reported.

“The market is on tenterhooks to do with the US response to Syria and the alleged gas attacks,” said Michael Johnston, a senior trader at HiFX.

The kiwi may have also received support from local data such as the stronger-than-expected lift in March spending on electronic cards. The kiwi rose to A94.95c from A94.76c late on Wednesday Johnston said the cross-rate looked “stretched and unstainable” around these levels.

The kiwi rose to 51.91 British pence from 51.79 pence. The kiwi traded at 59.53c from 59.40c.

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