5.26pm
After a brief rally this morning the kiwi slipped throughout today's local session.
At 5pm in Wellington the kiwi was buying US64.69c, from US65.22c at 8.30am today and US65.63c at 5pm on Friday.
The kiwi traded in a range of US64.67c to US65.40c during today's local session. ANZ Investment Bank senior dealer Mark Elliott said the kiwi fell on the back of some good selling out of Asia and seemed to be playing catch up to gains in the greenback on Friday night.
The greenback rallied on Friday when data showed US gross domestic product expanded at an annualised 2.8 percent in the second quarter. Meanwhile US consumer sentiment picked up more than expected in late August as oil prices eased from record highs and security fears abated.
"The market has been selling (US) dollars for a long time and I think it's just looking for an excuse to unwind. So really the kiwi is just playing catch-up on the move that we have seen from Friday night," Mr Elliott said.
He expects the New Zealand dollar to continue to soften during tonight's offshore session, and said the kiwi could trade down in the low US64c range over the next 24 hours, with the upside limited to US64.90-US65c.
Meanwhile at 5pm today, the Australian dollar was buying US69.65c (US70.62c at 5pm on Friday), the euro was at $US1.1996 ($US1.2106) and the greenback was fetching 110.35 yen (109.57).
On the crosses, the kiwi was buying A92.83c (92.95c), 0.5393 euro (0.5415), 36.21 British pence (36.48), 71.39 yen (71.66), and 0.8296 Swiss francs (0.8350).
The trade weighted index was at 66.24 (66.81), and the monetary conditions index was at plus 725 (704).
On the money market, 90-day bank bill yields were at 6.50 percent (6.49).
February 2006 bond yields were at 6.20 percent (6.17), July 2009s were at 6.21 percent (6.16), and April 2013s were at 6.22 percent (6.16).
- NZPA
<i>Currency:</i> Kiwi dollar grinds lower
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