The New Zealand dollar was locked in a now-familiar holding pattern below US47c yesterday after failing to make any headway against the US unit overnight.
By 5pm the kiwi was at US46.72c from US46.91c at Monday's close, while the aussie slipped to US54.35c from US54.62c Monday.
Bank of New Zealand currency strategist Stuart Ritson said in a daily commentary that the kiwi was hampered by profit-taking from Asian and North Asian accounts and traders which had been buyers last week in the US45c region.
"Flows were light in overnight trade and responsible for the modest range. By comparison to the Australian dollar, the outcome was mildly positive accounting for net gains on major currency crosses," Mr Ritson said.
The kiwi ranged between US46.66c and US46.78c throughout the local session, and dealers expected to see a similar range overnight.
In Asia yesterday, the US dollar rose to a one-week high against the yen as a rally on Wall Street and more weak economic data from Europe encouraged investors to reassess their recent negative outlook for the US economy.
The Bundesbank said in a monthly report that Germany's economy grew by a subdued 0.25 per cent in April-June, while inflation data from the European Union showed euro zone consumer prices rose 1.9 per cent year-on-year, still below the European Central Bank's two per cent ceiling.
That saw the Dow Jones industrial average rise 2.42 per cent, the Nasdaq Composite Index 2.46 per cent and the broader market S&P 500 index 2.36 per cent.
Here, the NZSE-40 capital index managed a much more subdued rise yesterday of 0.33 per cent on shares worth just $50 million.
On the crosses at 5pm, the kiwi was buying A85.89c (A85.91c at Monday's close), 55.68 yen (55.35), 30.57 pence (30.41), 0.7020 Swiss francs (0.6973), and 0.4782 euro (0.4757).
The aussie was trading at $NZ1.1642 ($NZ1.1640).
On the money market, 90-day bills were at 5.91 per cent (5.89), the trade-weighted index was at 53.56 (53.48) and the monetary conditions index was at minus 431 (minus 439).
On the debt market, the April 2004 bonds were at 5.76 (5.77) per cent, the November 2006 bonds were at 6.16 per cent (6.17), and the November 2011 bonds were at 6.42 per cent (6.34).
- NZPA
<i>Currency:</i> Kiwi fails to make headway vs Greenback
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