The New Zealand dollar closed in the middle of its range today following an uneventful session.
At 5pm, it was buying US71.55c compared with its US71.65c opening and US71.35c close yesterday.
ANZ senior dealer Mark Elliott said the kiwi was simply following the Australian dollar around.
"It's just trading a range."
The aussie finished on US78.77c compared with US71.35c yesterday.
While some analysts believe the kiwi's repeated failure to break above US72c suggested a big break lower, Mr Elliott takes a contrary view. He says a break up to US75c or US76c was more likely.
"Kiwi looks like it's building for a move higher."
He said the factors behind the kiwi's two-year rally had not changed -- interest rate differentials were in its favour, there was continued heavy issuance of NZ dollar-denominated bonds and the kiwi would get a lift from likely higher Australian interest rates.
The kiwi's plateau under US72c pointed to consolidation before a move up, he added.
However, BNZ currency strategist Sue Trinh warned, the kiwi's rally last week from the US69c area had stalled and another failure in the US72c region "would probably see the kiwi back to US69.50c in quick time".
The greenback finished at 104,34 yen (105.32) while the euro was buying US$1.3024 (US$1.2958).
On the crosses the kiwi was buying A91.05c (A91.08c), 0.5494 euro (0.5508), 37.78 British pence (37.85), 74.95 yen (75.15), and 0.8518 Swiss francs (0.8560).
The monetary conditions index was at plus 969 (971), and the trade-weighted index was at 69.49 (69.53).
On the money markets, 90-day bank bill yields were at 6.86 per cent (6.86), July 2009 bonds were at 6.09 per cent (6.10), and April 2015s were unchanged at 5.93 per cent.
- NZPA
<EM>Currency:</EM> Directionless NZ dollar range trades
AdvertisementAdvertise with NZME.