By ELLEN READ
Strong economic performance and diverging interest rates are pushing the New Zealand dollar up against the Australian currency.
The kiwi hit 91.73Ac yesterday before settling back to 91.42Ac at 5pm.
With a spike to 91.78Ac two weeks ago, the kiwi is hitting levels against the aussie not seen since early April last year.
"It's been a very impressive run for the kiwi and for very strong reasons," said Commonwealth Bank senior currency strategist Alex Schuman.
"[The] kiwi has really emphasised not just its growth advantage but its interest rates and also its competitiveness over Australia in the last few weeks. It really has been a stunning performance."
But he was picking the aussie to pick up and said 92Ac was likely to be the peak of this cycle.
Deutsche Bank chief economist Ulf Schoefish expected the kiwi to remain strong.
"With latest data having supported the Reserve Bank of New Zealand's hawkish stance and with the Reserve Bank of Australia seemingly comfortable with current settings, we expect the firm tone to continue."
Having broken above 64USc during the day, the kiwi slipped back to lie at 63.88USc at 5pm, little changed from Monday's 63.68USc.
Little movement is likely before the United States Federal Reserve statement on rates on Thursday morning.
Economy, interest rates make kiwi fly
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