KEY POINTS:
The New Zealand dollar spent most of the overnight session above US70c, but slipped back below the level around 4am.
By 8am the kiwi was buying US69.89c, little changed from the rate at 5pm yesterday, having been up to near US70.60c during the night.
The kiwi dropped below US70c for the first time in 11 months on Friday and briefly got down to around US68.25c on Wednesday afternoon.
Bank of New Zealand currency specialist Danica Hampton said that overall, the bigger picture still showed that a combination of a firmer US dollar and concerns about the slowing New Zealand economy should ensure bounces in the kiwi against the greenback were limited.
But, given the speed and size of the recent decline, the NZ dollar was looking overdue for a bit of consolidation against the US currency, she said.
Yesterday the NZ currency was once again under some pressure, though it seemed to come more from technical momentum accounts rather than from the Japanese retail accounts that dominated on Wednesday.
Against the Australian dollar, the kiwi spent brief moments at two-month highs around A80.50c yesterday but by today's local open was down to A80.27c.
The NZ dollar gained slightly against the euro overnight to 0.4720 from 0.4698, while the yen opened locally little changed on 76.63. The trade weighted index was unchanged at 64.97.
The focus today will be on June quarter retail trade figures due out at 10.45am.
The US dollar rallied to an almost six-month high against the euro overnight amid growing concern over euro zone economic weakness and accelerating inflation in the United States.
- NZPA
