The New Zealand dollar was little changed ahead of the US presidential elections and a review of interest rates from the Reserve Bank of Australia that may narrow the gap with New Zealand rates.
The kiwi dollar traded at 82.44 US cents from 82.51 cents at 5pm in Wellington yesterday. The trade-weighted index was at 73.91 from 73.95.
In the US, the battle for the presidency remains too close to call. President Barack Obama pulled ahead of Mitt Romney in an October 31 - November 3 national poll conducted by the Pew Research Center, favoured by 48 per cent versus 45 per cent, compared with a deadlock of 47 per cent a week ago. In Australia, the central bank is expected to cut its cash rate to 3 per cent from 3.25 per cent.
The New Zealand dollar slipped to 79.55 Australian cents from 79.65 late yesterday.
"The key test for the cross will come from today's RBA meeting, which remains a close call," said Kymberly Martin, strategist at Bank of New Zealand. "If a cut is delivered it would likely see the NZD/AUD re-test September's 0.8060 highs. An 'on-hold' decision, however, could also prompt a significant reaction."
