The New Zealand dollar has lost more than 50 basis points against its United States counterpart in the past 24 hours, both on greenback strength and concerns about economic data out this week.
At 5pm, the kiwi was at US73.53c (from US74.09 at the same time yesterday), having ranged between US73.38c and US73.71c.
The kiwi began today's session at US73.58c.
The Australian dollar was at US78.46c (US79.14c), down 68 basis points in the past 24 hours.
BNZ currency strategist Sue Trinh said the kiwi's downward bias was helped along by local selling.
"The market is preparing itself for Wednesday's current account deficit, and also Thursday's (fourth quarter) gross domestic product figures (GDP)," Ms Trinh told NZPA today.
The 2004 current account deficit is expected to balloon to $9.1 billion in 2004, equating to 6.3 percent of GDP, which, in turn, is expected to show growth eased to 0.6 percent in the December quarter.
"There is some downside risk attached to the GDP figure, so that's seen the kiwi succumb to a little profit taking, but also a stronger US dollar dynamic," Ms Trinh said.
Tomorrow morning NZT, the US Federal Reserve is expected to hike its benchmark interest rate by 25 basis points to 2.75 percent, narrowing that country's interest rate differential with New Zealand.
Also, Ms Trinh said a weaker euro had seen the greenback "do quite well... and the kiwi's been dragged down with the euro".
The euro was at $US1.3164 ($US1.3256), and the greenback was at 105.14 yen (104.93).
Although the kiwi fell against the US dollar, it held up well against the currencies of its main trading partners.
The trade-weighted index was at 71.28 (71.51), and the monetary conditions index was at plus 1115 (1132).
On other cross rates, the kiwi was buying A93.71c (A93.62c), 0.5586 euro (0.5590), 38.75 British pence (38.73), 77.33 yen (77.75), and 0.8667 Swiss francs (0.8660).
On the money markets, 90-day bank bill yields were at 7.06 percent (7.05), July 2009 bonds were unchanged at 6.32 percent, and April 2015s were at 6.21 percent (6.20).
- NZPA
<EM>Currency:</EM> NZ dollar loses ground ahead of key economic data late this week
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