The New Zealand dollar drifted lower in today's session ahead of the key Reserve Bank of New Zealand (RBNZ) monetary policy statement tomorrow morning.
At 5pm, the kiwi was at US62.56c (from US63.17c at 5pm yesterday), having traded between US63.51c and US63.80c.
The Australian dollar was at US69.73c (US70.45c ).
Westpac currency strategist Johnathan Bayley said the kiwi was range-bound today, with reasonable liquidity but light flow.
"It went a little firmer this morning, but a little softer this afternoon," he told NZPA today.
The market unanimously believed the RBNZ would raised the official cash rate by 25 basis points tomorrow morning, taking it to 5.75 per cent, Mr Bayley said.
The market had already factored that in, he said, noting it was the comments by RBNZ governor Alan Bollard that would provide direction.
Mr Bayley expected Dr Bollard's comments to be "reasonably hawkish", keeping the "housing market on notice" and providing support for the kiwi-greenback cross.
"Of the kiwi crosses... (the kiwi-aussie) is probably the most sensitive to RBNZ expectations," he said.
"It's a cross that will be well supported while the RBNZ tightens the expectations... once that's out of the way it goes lower."
The kiwi-aussie was currently at the top of its A87c to A90c range.
Last night, hawkish comments by US Federal Reserve chairman Alan Greenspan gave the greenback some strength and pushed the kiwi lower.
Meanwhile, the US dollar was trading at 109.07 yen (109.75), and the euro was buying US$1.2237 (US$1.2322).
On the crosses, the kiwi was buying A89.72c (A89.67c), 0.5111 euros (0.5127), 34.07 British pence (34.35), 68.23 yen (69.33), 0.7759 Swiss francs (0.7811).
The trade-weighted index was at 63.57 (64.02), while the monetary conditions index was at plus 438 (421).
On the money market, 90-day bank bill yields were at 6.01 per cent (5.99), February 2006 bonds were at 5.91 per cent (5.89), July 2009s were at 6.15 per cent (6.12), and April 2013s were at 6.29 per cent (6.26).
- NZPA
<i>Currency:</i> Kiwi drifts lower ahead of possible OCR rise
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