The New Zealand dollar closed lower in Wellington this evening after being dragged down by the aussie this afternoon.
After buying US69.34 this morning, the kiwi had fallen to US68.94 at 5pm, against US69.62c at yesterday's close.
It traded between US68.93c and US69.43c during the day.
The Australian dollar fell below US75c this afternoon -- after closing locally at US75.60c yesterday -- and "once it dropped the kiwi jumped on board", BNZ currency strategist Sue Trinh said
The aussie finished in Wellington at US74.85, while the kiwi had eased down a touch to A92.10c, from A92.15c yesterday.
"With a mix of names selling the aussie, the kiwi struggled and fell in sympathy as well," she said.
That saw the kiwi break below US69c, which generated a whole new wave of kiwi selling.
If the kiwi doesn't climb back above US69.20c quickly "it's looking rather bad for the currency in the short term", Ms Trinh warned.
The New Zealand dollar also fell on its other key crosses, buying 0.5647 euros (0.5654), 0.8736 Swiss francs (0.8732), 38.43 British pence (38.56) and 76.46 yen (76.90).
On a trade-weighted basis, the kiwi was at 69.92 (69.93) and the monetary conditions index was at 999 (1014).
In Wellington, the euro closed on US$1.2207 compared to US$1.2318 yesterday, while the greenback was buying 110.98 yen from 110.40.
On the money market 90-day bank bill yields were steady on 7.05 per cent. July 2009 bond yields flat on 5.69 per cent, while the April 2015 yields were on 5.69 per cent (5.68).
- NZPA
<EM>Currency:</EM> Aussie dips, and kiwi jumps on board
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