The New Zealand dollar jumped and has held onto its gains after the latest opinion poll showed the National Party back in the election race lead and with the numbers to govern alone.
The kiwi dollar was trading at 72.87 USA cents as at 5pm in Wellington from 72.88 cents at the start of the day and 72.27 cents before the poll was released yesterday.
Tomorrow evening's Colmar Brunton poll will be keenly watched because it was the same poll last week that surprised markets by putting Labour ahead on 43 percent to National's 39 percent.
According to the latest Newshub-Reid Research poll, the National Party has been put on a lead of 47.3 percent, up 4 percentage points from its previous poll, with Labour on 37.6 percent, a 1.6 percent-point drop.
New Zealand currency (file picture). "Orders were absorbing the trades and then we had a poll with National ahead and boom".
Prime Minister Bill English's National Party has vowed to support free trade as global protectionism rises, in particular, by championing the Trans-Pacific Partnership pact, which Labour has said it would renegotiate.
Both parties would need to rely on the nationalist New Zealand First Party to form a coalition government under the country's proportional representation system as the winning party or parties need 61 of parliament's 120 seats to form government.
"There was a bit of a reality check this morning that this is just one poll and polls are not reliable", said Rodrigo Catril, forex strategist at National Australia Bank.
The kiwi didn't move much today after figures showed the food price index rose 0.2 percent seasonally adjusted in August as butter hit a record high of $5.39 per block, up 11 percent in the month and 62 percent from a year earlier.
The kiwi rose to 80.26 yen from 79.01 yen yesterday.
It gained to 60.90 euro cents from 60.43c and rose to 4.7628 yuan from 4.7272 yuan.
The two-year swap rate rose 1 basis point to 2.15 percent while 10-year swaps rose 4 basis points to 3.10 percent.