The New Zealand dollar closed almost where it began yesterday, having been spared from a move lower by a rate cut and positive GDP figures across the Tasman.
At 5pm the kiwi was at US41.30c from US41.34c at Tuesday'a close, having traded between US41.18c and US41.38c throughout the day.
Its Australian counterpart was at US51.57c (US51.65c).
The Reserve Bank of Australia yesterday cut its cash rate by 25 basis points to 4.25 per cent, citing weak international conditions.
That move was followed closely by news the Australian economy continued to defy the global slowdown, growing 1.1 percent in the three months ending September 30.
Market economists had expected a quarterly increase of 0.9 percent.
Year-on-year growth from the September quarter in 2000 was 2.5 per cent, the Australian Bureau of Statistics (ABS) said in its national accounts report.
The strong result was driven by brisk consumer spending, strong housing construction and manufacturing sectors and government spending, the ABS said.
"(Kiwi) was coming under a bit of pressure until that good aussie data came out. The aussie dollar bounced from US51.30c and the New Zealand dollar went up with it," one local dealer said.
Dealers expected the kiwi to trade between US41.30c and US41.50c overnight.
On the crosses at 5pm the kiwi traded at A80.10c (A80.04c at Tuesday's close), 51.31 yen (51.30), 29.04 pence (29.06), 0.9078 marks (0.9079), 0.6830 Swiss francs (0.6845) and 46.42 euros (46.42).
The Australian dollar was buying $NZ1.2487 from $NZ1.2495.
The trade-weighted index was at 49.42 (49.44), the 90-day bank bills were at 4.88 per cent (4.86) and the monetary conditions index was at minus 935 (minus 934).
On the debt market, the March 2002 bonds were at 4.74 per cent (4.73), the April 2004s were at 5.46 per cent (5.36), the November 2006s were at 5.98 per cent (5.93) and the November 2011s were at 6.36 per cent (6.40).
- NZPA
<i>Currency:</i> Kiwi closes flat, dodges move lower
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