The New Zealand dollar strengthened throughout the day, closing at US42.30c last night, up from 41.84c at the open.
The kiwi is likely to settle a little this week following last week's big downward swing, Deutsche Bank currency dealer Daniel Swasbrook said.
The dollar was likely to find some support overnight between US42.45c and US42.90c, he said.
"The market was just a little bit short in the kiwi - there was a resistance level of 42.25c to 42.30c.
"If we can get through here, you probably could see a move through to the 42.55c-42.60c region, and probably a bit more selling interest then," Mr Swasbrook said.
"The kiwi's just doing a little bit better on the crosses and we did expect that - definitely we had been oversold on a lot of these crosses," he said.
"I would say the kiwi's going to really struggle to get through the 42.65c to 42.70c region this week, and it should be initially back down to 41.85c.
"The kiwi's stabilising here, consolidating and there's nothing much out this week in terms of data. It's all going to be determined by what happens to the euro ... that's the market focus."
The euro bounced back overnight following the announcement of better-than-expected Japanese GDP figures, with reasonable buying of euro-yen.
The Australian dollar was at US55.85c yesterday evening, up slightly on the opening price of 55.63c.
- NZPA
<i>Currency:</i> Firmer kiwi seen stabilising
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