A whippy session flung the kiwi into fresh five-year highs against the US dollar yesterday.
By 5pm the kiwi traded at 57.59USc from 56.70USc at Thursday's local close.
Bank of New Zealand currency strategist Sue Trinh said the kiwi had been "quite impressive" but could be in for a setback.
"I just can't help feeling that perhaps ... we might be in for a bit of a deeper retracement. But that said, it's difficult to fight the current rally," Trinh said.
"[On Thursday night] the euro traded some 200 points - quite whippy markets, quite fluid as well. Obviously the euro's rally dragged the kiwi higher with the European Central Bank leaving rates on hold.
"For now I'd say a bit of consolidation - the 57.70/57.80USc region is key resistance now, so that will be the focus of bulls to try and get through there," she said.
The ECB's decision to keep rates at 2.50 per cent spurred the euro to rise above US$1.15 against the greenback for the first time since January 1999, when it was launched at US$1.17.
Europe's interest rates - the benchmark is 2.50 per cent - are double the Federal Reserve's federal funds rate.
On the crosses at 5pm, the kiwi was buying 89.57Ac from 89.20Ac at Thursday's close, 67.60 (66.15), 35.9p (35.5p), and €0.4996 (€0.5010).
- NZPA
<i> Currency:</i> Kiwi returns to five-year highs
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