The New Zealand dollar failed to storm the fortress 41USc overnight Tuesday, but maintained its position well above 40c yesterday.
The kiwi ended the session at 40.67USc, having hit a high of 40.93c overnight in New York.
A Greenwich Financial Services director, Derek Rankin, said that sentiment had started to turn. "Certainly with Australian trade data being much better than expected, there's been interest to buy both Australian and New Zealand dollars.
"That's something we haven't actually seen for a while. Instead of the overwhelming sentiment of looking to sell on any rallies, now people are looking at any opportunities to buy it if they can get it cheaper," he said.
The Australian market was expecting a $A600 million deficit in goods and services in October, and in fact was surprised by a surplus of $A324 million.
The aussie was around the low 52USc area, pushing to a high of 52.73c after the trade data was released.
The New Zealand dollar was likely to gather further momentum if it broke the 41USc barrier.
"The 40.80c area is always going to be tough, but 41c psychologically is a hard number to get through," Mr Rankin said.
"There are a lot of sell orders around 41.20/30c, so importers are looking to take cover if they can get it up there.
"But if we can actually push up through 41.20/30 then obviously exporters will be starting to scramble to get cover anyway."
- NZPA
<i>Currency:</i> Change in sentiment for kiwi
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