New Zealand dollar traded near 10 years against the currency of Australia

New Zealand dollar traded near 10 years against the currency of Australia before a government report that economists said will show the economy of the smallest nation was almost stagnant in the third quarter.

The kiwi call weakened against all but one of its top 16 partners from the data today showed New Zealand's deficit on current account increased as exports declined. Australia's currency was near a seven-month high against the yen after an index of leading indicators for the economy of the South Pacific nation increased.

"I am relatively bearish on the kiwi," said Masashi Murata, vice president of foreign exchange in Tokyo at BBH Investment Services Inc., a subsidiary of New York, Brown Brothers Harriman & Co. "New Zealand does not benefit from increased demand in emerging markets, which in turn diminishes the prospects for domestic consumption and rising interest rates. "

New Zealand dollar was trading at $ 1.3414 as of 16:22 Aussie NZ New Zealand in Sydney $ 1.3406 yesterday in New York, after falling to $ 1.3446 in New Zealand today, the most weakest since September 2000. New Zealand's currency was at 74.32 U.S. cents of 74.42 cents and bought 62.23 yen from 62.31 yen.

The Australian dollar was at 99.71 U.S. cents of 99.79 cents and was trading at 83.47 yen from 83.56 yen after rising to 83.69 yen on December 14, the strongest since May 13.

Growth slows

The gross domestic product of New Zealand rose 0.1 percent in the three months to September 31 the previous quarter. The economy grew 0.2 percent in the three months ended June 30. Statistics New Zealand said the current account deficit widened to 1.77 billion U.S. dollars New Zealand (1310 million dollars) in the last quarter, from NZ $ 987 000 000 the previous year.

Australia index of future economic growth rose 0.3 percent in October, Westpac Banking Corp. and Melbourne Institute said today.

The Aussie took a two-day advance against the dollar before a government report forecast to show the U.S. economy grew faster than previously reported, increased demand for assets in the U.S. economy.

"During the past week, we have seen the resistance comes in at around the level of parity for the Australian dollar against the dollar, said Jonathan Cavenagh, currency strategist with Westpac headquarters in Singapore, the second largest lender in Australia. "May the strength of the dollar will extend to the Australian-American to some extent and certainly raises the limit on the Australian-American."

U.S. Gross domestic product expanded at an annual rate of 2.8 percent in the third quarter faster than the 2.5 percent estimate issued last month. The report is due today.