The holiday for London and New York overnight quashed any potential for excitement yesterday in the New Zealand dollar.
The kiwi traded in a tight 12-point range but there was nevertheless a reasonable volume, a local trader said.
At 5 pm the kiwi traded at 42.27USc, down from Monday's close of 42.58c while the aussie traded at 51.78USc, from 52.06c.
"It's been good volume considering the range. We seem to be stuck in this same old range again, back in the 42.20/42.50c range.
"It's still a buy on the dips at the moment, in the short term anyway. I think there will be a fair few bids especially down to 41.80c. If we get down there, you'll probably see a few more sellers pop up again.
"Even though most guys still think it's a buy, we haven't seen the top side get pushed at all."
The kiwi had slightly outperformed the aussie yesterday, supported by some exporter buying in New Zealand. The euro, which looked fairly sick at the end of last week, has taken a breather with the New York and London holidays. The euro closed in New Zealand at 85.74USc, from 85.88c at Friday's close.
Hong Kong and Shanghai Bank said in a commentary yesterday that the kiwi "remains reasonably solid."
- NZPA
<i>Currency:</i> Holidays keep kiwi in tight range
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