NZ dollar bounces around as US gains

The New Zealand dollar bounced around overnight in a band between about US67.20c and US67.75c, as the greenback gained for a third straight day against a basket of currencies.

At 8am the NZ dollar was buying US67.59c, from US67.35c at 5pm yesterday.

In its morning briefing notes, ANZ bank said the NZ dollar appeared to have landed in a sea of tranquillity as other currencies tumbled against it.

Overnight the kiwi was unable to break through selling interests at US67.80c but gained against most other currencies, ANZ said.

"The NZD appears to be waiting for the next bus and unsure of which one to catch."

Despite the strengthening US dollar, the kiwi remained resilient, ANZ said.

The Australian dollar succumbed, leading to a break below the key level of $1.24 to the aussie, or above A80.65c to the kiwi.

The reluctance of the NZ dollar to head lower was frustrating, ANZ said.

At 8am the NZ dollar was buying A80.67c from A80.15c at 5pm.

The kiwi was also up to 0.4779 euro at the local open from 0.4735 at the local close, and to 65.63 yen from 65.40. The trade weighted index rose to 63.26 at 8am from 62.82 at 5pm.

Overnight, investors continued to trade on the strong US jobs numbers from Friday while awaiting the Federal Reserve's statement after its policy meeting later this week.

Sterling extended losses triggered last week by the Bank of England's surprise expansion of its quantitative easing programme, with the kiwi topping 41p, its highest level against the British currency in 17 months.

- NZPA