Australian Dollar At 5-month High Versus Kiwi [AUD/NZD]
4/16/2008 10:56:34 AM The Australian dollar edged higher in the mid-morning New York deals on Wednesday against its New Zealand counterpart, hitting a 5-month high of 1.1896 by about 10:25 am ET. The Aussie has been moving in an upward channel versus the New Zealand dollar from March 25 this year.

Economic news made headlines in Australia during early morning Wednesday was the survey conducted by the Westpac-Melbourne Institute. The institute said that the leading index slowed to 3.3% in February, from a reading of 4.1% in January. It marked the third straight month of lower growth figures.

In its commentary, the Westpac-Melbourne group said the February index reading appeared to help assure that inflation in Australia remained under control and eliminate the need for new action by the RBA.

Meanwhile, a Statistics New Zealand report this week showed the retail sales dropped 0.7% in February, the most since April 2007, which is clearly indicating that the consumer spending is slowing.

At the same time, New Zealand consumer spending and house price growth slowing and business confidence at a 33-year low, according to a recently released report.

Data from the U.S. Department of Labor showed that the consumer price index rose 0.3% in March after coming in unchanged in the previous month. The report also showed that the core consumer price index, which excludes food and energy prices, edged up by 0.2% in March. The increase in core prices also came in line with economist estimates.

The Aussie fetched above 1.1900 level versus the New Zealand dollar by about 10:35 am ET Wednesday, first time since November 2007. The pair is currently trading at 1.1890, a few pips down from its multi-month peak of 1.1913.

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