The New Zealand dollar tracked lower against a resurgent US dollar today, giving up some of its gains from yesterday's recovery.
The kiwi also underperformed against other currencies, reflected in the trade weighted index's fall to 64.62 from yesterday's 64.74 close.
At 5.45pm, the kiwi was buying US64.75c compared with the US64.93c close yesterday.
ANZ Bank said the kiwi was trapped within a US64.50c to US65.07c range.
"NZD continues to remain a sell the rally story as poor data of our own is not far away."
The aussie cross rate was little changed A84.49c, compared with A84.44c at the local close yesterday. The Australian dollar received a small boost from a rise in employment last month to the tune of 23,400 jobs, beating a forecast increase of 10,000. The surprisingly strong data underpinned expectations of further interest rate rises from the Reserve Bank of Australia.
Domestic data is thin this week, but next week features the Reserve Bank of NZ monetary policy statement and interest rate review, along with quarterly terms of trade on Monday, and monthly retail sales on Wednesday.
The US dollar steadied after getting a boost yesterday from a surprisingly big jump in US labour costs that suggested the Federal Reserve may have to raise interest rates further.
Overall, major currencies remain stuck in tight ranges as market players see the Fed likely to hold rates steady, the European Central Bank tightening policy more in the coming months but the Bank of Japan taking a go-slow approach to lifting rates.
Rates:
5.45pm today 5pm Tuesday
NZ dlr/US dlr US64.75c US64.93c
NZ dlr/Aust dlr A84.49c A84.44c
NZ dlr/euro 0.5054 0.5065
NZ dlr/yen 75.57 75.63
NZ dlr/stg 34.39p 34.28p
NZ TWI 64.62 64.74
Australian dollar US76.69c US76.85c
Euro/US dollar 1.2822 1.2815
US dollar/yen 116.63 116.45
NZPA
<i>Currency:</i> Dollar tracks lower vs resurgent US dollar
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