NZ dollar consolidates in US73c range

The New Zealand dollar rebounded from lows after the US equity market rallied.

Still, it traded in a relatively narrow range between US72.85c and US73.30c and was near the higher end of that range at US73.24c at 5pm.

"Investors are comfortable with risk again," ANZ chief foreign exchange dealer Murray Hindley said.

"It was a big move yesterday and it has just consolidated today."

The NZ dollar fell to a three-week low of US71.60c on Thursday afternoon when the market was hit by global risk aversion, along with comments from the Reserve Bank indicating the official cash rate (OCR) would stay unchanged for longer than many in the market had been expecting .

Then news that the US economy grew at a 3.5 per cent annual rate in the July-September period, snapping four down quarters and exceeding forecasts for a 3.3 per cent rate helped improve sentiment.

ANZ bank said market sentiment had a "massive U-turn", following a few days where risk had been taken off the table.

The NZ dollar rose to 0.4932 euro at 5pm from 0.4870 at the same time yesterday, and to 66.87 yen from 64.77.

But the NZ dollar is struggling against the Australian dollar at A79.89c from A79.92c yesterday.

The trade weighted index lifted to 65.75 from 64.75 yesterday.

- NZPA