The New Zealand dollar came under pressure from a strengthening greenback and a waning aussie yesterday, with a test of 43USc looking likely overnight.
By 5pm the kiwi was at 43.05c, down 43.56c at Tuesday's close. Its Australian counterpart ended local trade at 51.87USc, down from 52.51c.
"The kiwi is sitting in the area of support around 42.95c, so the tone is that the kiwi is slightly under pressure here," one local currency dealer said.
The catalyst for the US dollar's strength was better-than-expected manufacturing figures issued overnight by the National Association of Purchasing Management survey for August.
The US dollar recorded its biggest one-day gain in six years in New York overnight, suggesting the world's largest economy may be on the road to recovery.
Bonds were down. March 2002s were at 5.75 per cent from 5.68 per cent, and April 2004s were at 6.31 per cent from 6.12 per cent.
- NZPA
<i>Currency:</i> Kiwi feels squeeze
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