KEY POINTS:
The New Zealand dollar closed flat today after choppy trading today on the back of a steady flow of news.
By 5pm, the kiwi was at US79.91c from US79.97c late yesterday afternoon, having traded a roughly 30-point range.
Against the aussie, the kiwi was at A85.65c from A85.71c. It was firmer against the yen, euro and sterling.
The kiwi was first sold after news this morning that government ministers had vetoed the Canada Pension Plan Investment Board purchase of 40 per cent of Auckland International Airport shares.
The rejection was not universally expected, although it was not entirely surprising given government moves leading up to the offer deadline.
The kiwi made up a little ground after Fonterra announced a higher than expected 40c boost in its payout forecast for the 2007-2008 season, lifting it to a new record of $7.30/kg milksolids.
The currency then hit its session low after March real estate institute data showed a sharp decline in house sales.
"I think it will struggle above US80c," said BNZ currency strategist Danica Hampton. She expected the kiwi to be capped by US80.30c overnight.
"It's choppy, range trading with a downside risk."
Global trading was quiet leading up to the meeting later today of the Group of Seven finance ministers and central bankers.
The euro rose against the US dollar, but remained below a record high after European Central Bank President Jean-Claude Trichet expressed concerns about foreign exchange volatility.
Reuters currency rates:
NZ dlr/US dlr US79.91c US79.97c
NZ dlr/Aust dlr A85.65c A85.71c
NZ dlr/euro 0.5066 0.5046
NZ dlr/yen 81.56 80.72
NZ dlr/stg 40.48p 40.42p
NZ TWI 71.02 70.86
Australian dollar US93.31c US93.30c
Euro/US dollar 1.5774 1.5847
US dollar/yen 102.09 100.89
- NZPA
