The New Zealand dollar firmed slightly ahead of key market data out later this week.
The kiwi closed at the top of a tight range, ending at US61.79c after hitting a four week low yesterday of US61.47c. The unit closed yesterday at US61.62c .
" If you look at it, the aussie's picked up a touch, the euro's picked up a touch, so it's just a US dollar move," one dealer said.
Despite the kiwi's resilience, dealers are braced for possible weakening if current account figures out on Thursday confirm market expectations of a widening deficit to 9 per cent of GDP.
It will be followed by first quarter GDP figures on Friday, which analysts are estimating could be 0.7 per cent .
Against the aussie, the kiwi firmed to A83.73c (A83.55c).
BNZ said the recent sharp correction in commodity prices had stalled the downward trend in the kiwi-aussie cross but expected it to be capped in the medium-term at A84.75c.
The cross had fallen 15 per cent from its peak in December to May on expectations of an economic slowdown, but it had recently experienced a short-lived rebound of 5 per cent.
Looking ahead, however, the market was expecting a rate cut in New Zealand, while Australia had recently hiked its rates in response to improved conditions.
Meanwhile, the US dollar remained firm as investors forecast an interest rate hike next week and possibly further tightening in August .
The following are Reuters currency rates:
5pm Tuesday 5pm Monday
NZ dlr/US dlr US61.79c US61.62c
NZ dlr/Aust dlr A83.73c A83.55c
NZ dlr/euro 0.4915 0.4897
NZ dlr/yen 71.34 71.28
NZ dlr/stg 0.3357 0.3342
NZ TWI 62.41 62.25
Australian dollar US73.34c US73.75c
Euro/US dollar US1.2573 US1.2585
US dollar/yen 115.47 115.65
- NZPA
<i>Currency:</i> Kiwi firms ahead of key data
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