The New Zealand dollar was sitting quietly yesterday but had room to climb higher overnight.
At 5pm the kiwi traded at US42.43c, down from its close Tuesday of US42.56c, while the aussie was at US51.94c, from US52.05c on Tuesday.
ANZ Investment Bank currency dealer Mark Elliott said the kiwi traded in a tight 17-point range today of US42.40/57c, and was likely to flit between US42.35/85c overnight.
"Essentially it's mapping the fortunes of the aussie, which are also pretty minuscule in terms of range in our trading day as well. There was a bit of importer selling in the kiwi today, no volumes of any significance.
"Provided we can hold this US42.35/40c level, I see it still with potential to track higher, US42.80/43.00c. If it breaks through (US42.35c), we'll settle back into a lower range," Mr Elliott said.
In the US, the greenback failed to react much to better-than-expected US services sector data overnight as focus shifted to how a US recovery could help lead to recovery elsewhere, including export-heavy Japan.
On the crosses at 5pm the kiwi was at A81.69c (A81.66c at Tuesday's close), while the aussie rose a touch to $NZ1.2238 ($NZ1.2231).
The kiwi slipped a little against other major currencies, buying 56.21 yen (56.38), 29.84 pence (29.92), 0.7199 Swiss francs (0.7229), and 0.4877 euro (0.4889).
The trade weighted index was at 51.58 (51.73), the monetary conditions index eased to minus 695 (minus 684), and 90-day bank bills were at 5.11 per cent (5.08).
On the debt market, the March 2002 bonds were at 4.63 per cent (4.70), the April 2004 bonds were at 5.82 per cent (5.87), the November 2006s were at 6.45 per cent (6.49), and the November 2011s were at 6.72 per cent (6.75).
- NZPA
<i>Currency:</i> Dollar sits tight
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