FXstreet.com (Sydney) - After hitting an intraday high of 1.2629, the Aussie gained ground on the Kiwi and the pair are now trading at 1.2557. This represents a modest improvement on the previous close of 0.3265%.
The Kiwi was expected to rally later in the week just as unemployment hit 6.5% which is the highest level since 2000. Reserve Bank Governor Allan Bollard has called for financial markets to see differences between the Kiwi and the Aussie. The Kiwi generally reflects fluctuations in the Aussie. This is particularly evident in the relatively stable cross-rate on foreign exchange markets. If financial can't see the differences, they will eventually lose money and it will hurt the New Zealand economy.