The New Zealand dollar chugged higher yesterday, fuelled by strength in its Australian cousin.
At 5pm the kiwi was at US41.71c from US41.54c at Thursday's close, while the aussie improved to US51.88c (US51.71c).
"Kiwi has been relatively bid again, largely due to the aussie dollar's strength really and also the euro strength overnight," one local currency dealer said.
"We have had a very very tight range - US41.65c to US41.76c - which isn't very exciting at all, but we are testing the top end of that range and I think it is still undecided whether we are going to break higher or lower."
Dealers expected the kiwi to trade between US41.60c and US41.90c overnight.
US non-farm payrolls, due out later in the evening, will provide the tone for offshore trading, the dealer said.
"That is actually a reasonably big mover sometimes."
On the crosses at 5pm the kiwi was at A80.40c (A80.33c at yesterday's close), 52.08 yen (51.55), 29.22 pence (29.34), 0.9129 marks (0.9157), 0.6876 Swiss francs (0.6895) and 46.68 euros (46.82).
The Australian dollar was buying $NZ1.2437 from $NZ1.2449.
The trade-weighted index was at 49.84 (49.72), the 90-day bank bills were at 4.90 per cent (4.90) and the monetary conditions index was at minus 891 (minus 903).
On the local debt market, the March 2002 bonds were at 4.76 per cent (4.77), the April 2004s were at 5.66 per cent (5.69), the November 2006s were at 6.21 per cent (6.22) and the November 2011s were steady at 6.56 per cent.
- NZPA
<i>Currency:</i> Kiwi edges higher on stronger Aussie / Euro
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