A lack of local economic data saw the Australasian currencies locked in a tight range yesterday, with international markets tuned in to the European Central Bank's rates announcement last night.
At 5pm the New Zealand dollar was at US41.81c, bang on Wednesday's close, while its Australian counterpart was at US50.82c (US50.69c).
"Kiwi and aussie are very much in a range trade at the moment," Bank of New Zealand forex manager, Greg Ball, said.
"They are dead in the water."
Europe's single currency, the euro, improved slightly against the greenback in local trade ahead of the ECB's bi-weekly policy meeting later in the day. It ended the local session at US89.34c (US89.09c late yesterday).
In a Reuters poll last week, 27 out of 50 economists expected the ECB to leave its minimum bid rate unchanged at 3.75 percent this week, while 21 forecast a cut by 25 basis points and two were undecided.
Dour reports since on the economic outlook in Germany and Italy, plus benign German inflation data on Wednesday night, have raised calls for the ECB to deliver a rate cut this week.
The bank's decision would set the tone for overnight trading, Mr Ball said.
He expected the kiwi to trade between US41.60c and US41.90c ahead of that data.
On the crosses at 5pm the kiwi was trading at A82.27c (A82.48c at yesterday's close), 0.4680 euros (0.4693), 51.42 yen (51.25), 29.30 pence (29.28), 0.9153 marks (0.9178), and 0.6928 Swiss francs (0.6937).
The Australian dollar rose to $NZ1.2155 from yesterday's close of $NZ1.2121.
The 90-day bill yields were at 5.06 per cent (5.09), the trade-weighted index was at 50.00 (50.03) and the monetary conditions index was at minus 858 (minus 853).
Among the bonds, the March 2002s were at 4.90 per cent (4.92), the April 2004s were at 5.17 per cent (5.26), the November 2006s were at 5.77 per cent (5.85) and the November 2011s were at 6.39 per cent (6.44).
- NZPA
<i>Currency:</i> Kiwi dead in water ahead of ECB rates announcement
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