The New Zealand dollar lost ground in a quiet session yesterday and looked set to be capped within a narrow range overnight.
By 5pm the kiwi traded at US48.30c, from US48.50c at Wednesday's close, while the aussie was at US55.33c (US55.51c).
Bank of New Zealand chief currency dealer Mike Symonds said the kiwi had been weaker yesterday, travelling within a narrow US48.26/33c range.
"It traded with a slightly weaker bias during the day but there's been no follow-through, and we seem to be consolidating after the pullback we've seen in the prvious 48 hour period," Mr Symonds said.
The kiwi has taken a big fall since Tuesday, when it reached a high of US48.90c.
The aussie took a similar approach to the day.
"Both look as if the downside we've seen in recent sessions has got a bit more follow-through, but on balance the uptrend looks very much in place for both of them," he said.
Overnight, he expected the kiwi to remain capped within the wider range of US48.20/50c.
Local dealers have blamed the kiwi's retreat on investors unwinding tentative forays into peripheral markets as the US economic recovery looked to be on shaky ground.
Investors are now eyeing with apprehension a key piece of US data due out today - October payrolls.
The data, expected to show non-farm jobs increased by just 7000 during the month, will further cement the probability of a rate cut by the Federal Reserve when it meets on November 6.
In Asian trading, the market was still digesting Japan's long-awaited banking reform plan and the accompanying "safety net" steps.
The US dollar was at 122.66 yen in Wellington at 5pm, compared with Wednesday night's close of 123.14 yen, while the euro was buying US98.76c (US98.28c).
On the crosses at 5pm, the kiwi was buying A87.30c (A87.38c at Wednesday's close), 0.4890 euro (0.4936), 59.25 yen (59.72), 0.3095 pence (0.3116), and 0.7157 Swiss francs (0.7231).
The Australian dollar was at $NZ1.1453 ($NZ1.1443) at 5pm.
The 90-day bank bill yield was at 5.91 per cent (5.90), the New Zealand dollar trade-weighted index was at 55.33 (55.63), and the monetary conditions index was at minus 266 (minus 240).
The April 2004 bonds were at 5.66 per cent (5.65), the November 2006s were unchanged at 5.98 per cent, and the November 2011s were at 6.27 per cent (6.31).
- NZPA
<i>Currency:</i> Kiwi eases during quiet session
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