The New Zealand dollar hung onto the gains it made in offshore trading last night, as the market waits on the European Central Bank's interest rate decision tonight.
At 5pm today the kiwi was buying US61.42c, from US61.18c at yesterday's local close, having traded in a narrow range of US61.33c to US61.55c today.
The European Central Bank (ECB) is widely expected to keep rates unchanged at its policy meeting tonight New Zealand time, but traders expect ECB President Jean-Claude Trichet to signal that rates will climb next month.
The kiwi was helped by continued softness in the US dollar, which came under pressure following remarks by Dallas Federal Reserve president Richard Fisher late on Wednesday that US first-quarter growth would exceed economists' expectations and that inflationary pressures "appear to be under control".
The Australian dollar was firm after the release of strong employment data today. Australian employment rose 27,000 in March, pushing the jobless rate down to match 29-year lows and raising expectations of a rate rise.
The Reserve Bank of Australia yesterday left interest rates unchanged at 5.5 per cent, but the strong jobs data added to growing talk that the RBA might have to raise rates at its next meeting.
At 5pm the kiwi was buying A84.32c, compared with A84.61c at yesterday's local close. Against the US dollar the aussie was buying US72.86c, from US72.33c at 5pm yesterday.
5pm today 5pm Wednesday
NZ dlr US61.42c US61.18c
NZ dlr/Aust dlr A84.32c A84.61c
NZ dlr/euro 0.4999 0.4981
NZ dlr/yen 72.12 71.40
NZ dlr/stg 35.03p 34.78p
NZ TWI 62.96 62.73
Australian dollar US72.86c US72.33c
Euro/US dollar US1.2286 US1.2281
US dollar/yen 117.41 116.71
- NZPA
<EM>Currency:</EM> Kiwi range trades ahead of ECB meeting
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