The New Zealand dollar retreated today from its highest level in nearly three weeks, but it remained well above US58c.
At 5pm the New Zealand dollar was buying US58.24c from US57.77c late yesterday, while the aussie was at US65.78c (US64.95c).
Murray Hindley, ANZ Investment Bank chief foreign exchange dealer, said the kiwi traded between US58.19/47c during the day and was likely to find support overnight.
It soared nearly one US cent to a high during the offshore session of US58.65c.
"The action was overnight -- a stronger euro, stronger aussie, stronger kiwi," Mr Hindley said.
"There's a couple of factors -- nervousness leading into September 11... there's a bit of interest in euro/kiwi markets... people are focusing on the continuing worsening US current account deficit.
"Tonight it looks like support here at US58.20c and again at US57.90c. The big level top-side is US58.70c -- if we break that then I think there's a chance we're going to push towards US60c," Mr Hindley said.
"We'll see continued US weakness again tonight, so there's more chance of testing that key resistance of US58.70c."
In Tokyo the greenback sat tight against other currencies, but it was under pressure from doubts over the sustainability of the US economic rebound after Friday's weak jobs data. The data suggested that the US job market was barely benefiting from a recent improvement in the economy.
In Wellington at 5pm the euro rose to US$1.1218 from US$1.1095 last night, while the US dollar was buying 116.84 yen (116.59).
On the crosses at 5pm the kiwi was buying A88.52c (A88.95c yesterday), 68.05 yen (67.34), 36.61 pence (36.44), 0.8033 Swiss francs (0.8025), and 0.5192 euro (0.5206).
The Australian dollar was buying $1.295 ($1.1251).
The monetary conditions index was at plus 252 (230), the trade-weighted index was at 62.31 (62.04) and 90-day bank bill yields were at 5.13 per cent (5.16).
The February 2005 yields were at 5.32 per cent (5.40), the November 2006s were at 5.58 per cent (5.67), and the November 2011s were at 5.93 per cent (6.00).
- NZPA
<i>Currency:</i> Kiwi gives ground but remains well above US58c
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