The New Zealand dollar continued to hold its strength along with the aussie today, underpinning the weakening greenback.
At 6pm the kiwi had firmed against the greenback to US44.25c, 0.20c higher than yesterday's close. It fulfilled dealers' expectations by trading in a tight range between US44.13 and 44.33c.
The kiwi was expected to benefit from a quarter percent interest rate cut in Europe, which saw the euro gain half a percent against the US dollar last night.
Tonight the New Zealand dollar was expected to rise to US44.60c before hitting resistance, and to fall no lower than US44.10c.
In Australia the dollar also strengthened against the greenback and on the back of local buying and good retail figures.
"The figures show the economy is certainly not in as bad shape as one would have thought, given the global outlook, " Citibank Australia forex head Nick Waite said.
At 6pm the Australian dollar was buying US53.42c and the kiwi fell against the aussie at A82.84c (A83.10).
On the crosses, the kiwi was buying 0.4815 euros (0.4849 at yesterday's close), 52.57 yen (52.80), 30.31 pence (30.39), 0.9418 marks (0.9480), 0.7298 Swiss francs (0.7359).
The aussie was buying $NZ1.2074 from $NZ1.2044 yesterday.
The trade-weighted index was at 51.67 (51.77), 90-day bill yields fell to 5.83 percent and the monetary conditions index eased to minus 616 (minus 605).
Bond yields continued to edge lower with the March 2002s at 5.68 percent (5.68 percent), the April 2004s at 6.08 percent (6.09), the November 2006s at 6.30 percent (6.29), and the November 2011s at 6.48 percent (6.46).
On Wall Street stocks slumped to their lowest levels in nearly five months on Thursday, after a wave of dour outlooks from key technology companies like Sun Microsystems Inc.
The gloomy outlook buried the blue-chip Dow Jones industrial average below the key 10,000 mark, sinking 171.32 points to 9,919.58.
The broader Standard & Poor's 500 Index lost 19.57 points to finish at 1,129.03, and the technology-laced Nasdaq Composite Index tumbled 51.49 points to 1,791.68.
Jittery investors got little cheer in the latest economic data, with one report showing the number of unemployed Americans on benefit rolls rose to a nine-year high. Another report showed July consumer spending grew at its slowest rate in nine months.
- NZPA
<i>Currency:</i> Kiwi and Aussie consolidate against weak greenback
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