5.40pm
The New Zealand dollar made a restrained recovery today following a sell-down last night against the greenback.
At 5pm in Wellington the kiwi was buying US61.45c from US61.79c at yesterday's local close after trading in a US61.22c to US61.45c range. The Australian dollar was at US70.72c (US71.16c).
ANZ Investment Bank senior dealer Mark Elliott told NZPA trade in the kiwi was "pretty muted" given last night's " fairly decent range".
The kiwi got hit down to US61.22c from a high of US61.90c in response to positive US jobs data.
"Weakness in the kiwi overnight was part of a broad strengthening in the US dollar", Mr Elliott said.
Today, the kiwi edged up from last night's low and closed on its high for the day.
"It's just been a retracement on the moves of the previous sessions," Mr Elliott said.
He was reluctant to give a range for tonight's offshore sessions, saying the kiwi's progress was contingent on whether it broke back through the US61.50c level.
"We could be back up testing the highs of the range, back up testing US61.90c or maybe beyond."
On the other hand, if the kiwi took out lows at the US61.20c level it could fall as low as US60.70c, Mr Elliott said.
In any event, US payroll data tonight would likely have a significant effect on foreign exchange markets.
Meanwhile at 5pm the US dollar was at 110.21 yen (110.09 last night), while the euro was at US$1.1421 (US$1.1437).
On the crosses, the kiwi was buying 67.72 yen (68.04), 36.88 pence (36.85), 0.8454 Swiss francs (0.8469), 0.5381 euro (0.5402).
The Australian dollar was at $1.1507 ($1.1514).
The trade weighted index was at 63.75 (63.99), the monetary conditions index was at plus 384 (403), and 90-day bank bills were unchanged at 5.33 per cent.
On the debt market, yields on April 2004 bonds were unchanged at 5.27 per cent, February 2006s were at 5.91 per cent (5.90), and November 2011s were at 6.22 per cent (6.20).
- NZPA
<i>Currency:</i> Kiwi creeps back from overnight sell-down
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