KEY POINTS:
The New Zealand dollar closed today little changed from yesterday's closing level.
It closed on US66.10c against US66.15c yesterday, having dipped to US65.7O in overnight trading.
BNZ currency strategist Danica Hampton said that yesterday's buoyant retail sales data meant it was too early to rule out another rate rise.
However, generally, the NZ dollar remained vulnerable to further profit taking now investor sentiment towards "carry trade" currencies was deteriorating, she said.
ANZ Bank said there were ominous signs for the kiwi having failed to get back above US66.50c.
Its advice was to expect further tests of support with a convincing break of US65.80c to deliver a move down to US65.20c, although greenback strength would be necessary to compliment that move.
Against the aussie dollar, the kiwi closed on A86.42c, virtually unchanged from yesterday.
The trade weighted index closed on 66.10 from 66.14.
In major currency trading, the yen jumped against the US dollar and the euro after a top Chinese central bank official was quoted saying the bank has been buying the Japanese currency for its $US1 trillion in foreign exchange reserves.
Wu Xiaoling, deputy governor at the People's Bank of China, was quoted by Bloomberg News as saying "we have" been buying yen for the country's reserves -- the world's largest at $US1.0096 trillion.
That came after PBOC Governor Zhou Xiaochuan caused a stir in the market last week by saying the country had a clear plan to diversify its reserves and sought assets in other currencies, not just the dollar.
In recent weeks, the central banks of Russia, Switzerland and the United Arab Emirates have expressed interest in buying yen or have already shifted funds into the currency.
The euro was little changed in Tokyo trading at $US1.2830
The US currency had earlier received a boost after the Federal Reserve said in minutes of its October meeting released today said that reducing inflation was its "greatest concern", but they shed little light on whether the Fed's next move might be to hike or lower rates.
Rates:
5pm today 5pm yesterday
NZ dlr/US dlr US66.10c US66.15c
NZ dlr/Aust dlr A86.42c A86.41c
NZ dlr/euro 0.5152 0.5163
NZ dlr/yen 77.90 77.91
NZ dlr/stg 34.98p 34.90
NZ TWI 66.10 66.14
Australian dollar US76.52c US76.55c
Euro/US dollar 1.2831 1.2811
US dollar/yen 117.86 117.74
- NZPA