Reporters are not expected to get any respite from a strong New Zealand dollar this week as the United States Federal Reserve prepares to deliver its verdict on the US economy.
The dollar dipped briefly below US82c yesterday after milk co-operative Fonterra cut its forecast payout.
Craigs Investment Partners broker Chris Timms said the fall was short-lived, as the dollar rose back to around the US82c mark soon after lunch.
Fonterra cited the rising New Zealand dollar, declining global prices of commodities and increased production from northern hemisphere rivals as the reason for the cuts.
Exporters were being choked by the dollar, Mr Timms said.
The dollar had dropped US2c in value since March 1, but there was no real relief for exporters.
The dollar closely followed the fortunes of the Dow Jones Industrial Average. When the index rose in value, so did the value of the dollar as investors became more inclined to accept risk in their portfolios.
The Fed would have some positive news to consider at its meeting on Wednesday (US time), he said.
If the Fed was positive about the future, the major US stock indices would rise and so, too, would the value of the New Zealand dollar.
US jobs growth dampened the likelihood of the Fed printing money for a third time, a move that would further devalue the greenback and push the kiwi higher.
However, the dollar was still aligned to the risk appetite of investors, Mr Timms said.
Friday's US job numbers bolstered confidence that the world's largest economy remained on track for a sustained recovery.
Key US economic data set for release this week includes retail sales tomorrow and the consumer price index on Friday.
While US data continued to show a recovery trend, economic conditions were dire in Europe and mixed in China, Reuters reported.
Data over the weekend showed China's trade balance plunged $US31.5 billion ($NZ38.42 billion) into the red in February as imports swamped exports to leave the largest deficit in at least a decade and fuel doubts about the extent to which frail foreign demand or seasonal distortion drove the drop.
Australian shares fell as signs the Chinese economy, the world's second-largest, was slowing have raised concerns for investors in companies that had a large business exposure there.
China is Australia's top trading partner and the largest consumer of its resources.
Recent data showed China's inflation cooled in February, while retail sales and industrial output came in below forecast.
