Dollar consolidates above US72c

The New Zealand dollar traded in a narrow range today, dragged a little higher on the coat-tails of its Australian counterpart.

But BNZ Capital currency strategist Danica Hampton said it was a day of consolidation, ahead of the October payrolls report due out of the United States overnight.

"We've seen a bit of interest to sell kiwi out of Asia, so as a result we saw it fall from about US72.25c to just under US72c, but it recaptured its gains as the day wore on," she told NZPA.

The kiwi was at US72.25c at 5pm today, up from US71.89c at 5pm yesterday, but easier against the aussie at A79.12c from A79.34c.

The Australian dollar edged further above US91c after the Reserve Bank of Australia today sharply upgraded growth forecasts and said more gradual increases in interest rates will be required.

Ms Hampton said the market was expecting the RBA to revise up GDP and inflation forecasts, but there was surprise how strong the forecasts were when the numbers came out. The aussie was a "little perky" as a result and the kiwi was dragged a little higher against the US dollar.

"But it's really a case of consolidation ahead of tonight's payrolls release."

At 5pm the kiwi was firmer against other major currencies compared with 24 hours earlier, moving to 0.4857 euro (from 0.4845) and 65.53 yen (64.98). The trade-weighted index edged up to 64.78 (64.64).

- NZPA