5.30pm
Gains in the New Zealand dollar early this morning were slowly eroded throughout the rest of the local trading session.
At 5pm in Wellington the kiwi was buying US62.83c from US62.60c at 5pm yesterday and US63.06c at 8.30am this morning.
The aussie was at US73.30c at 5pm (US73.05c last night).
The kiwi started out today with a "hiss and a roar" according to BNZ currency strategist Sue Trinh and had a steady grind down as it tracked the euro lower.
The euro had big gains overnight following an unexpected rise in a German business shadow.
But Ms Trinh said there seemed to have been some profit taking from those gains today, which reversed much the rises.
"We're seeing a lot of to-ing and fro-ing lately... What happens in one session can be reversed in the next," Ms Trinh said.
Overnight she said the kiwi was likely to face resistance at US63.25c and initial support at US62.60c.
"But really the big one to keep an eye on is around the US61.95c-US62c figure area. If that gives way then you'll probably see a much deeper pullback in the kiwi."
The market is waiting on the Reserve Bank's official cash rate review on Thursday morning.
Economists are divided on whether the bank will raise rates by a quarter of a percentage point or leave them unchanged at 5.25 per cent.
On the international data front the US is releasing its latest consumer confidence figures overnight.
At 5pm the greenback was buying 108.57 yen (108.93), and the euro was buying US$1.1838 (US$1.1794).
On the crosses, the kiwi was buying A85.77c (A85.70c), 0.53.06 euro (0.5308), 35.18 British pence (35.30), 68.20 yen (68.19), and 0.8232 Swiss francs (0.8256).
The trade-weighted index was at 63.84 (63.75), while the monetary conditions index was at plus 424 (414).
On the debt market, 90-day bank bill yields were at 5.67 per cent (5.63 per cent).
The February 2006 yields were at 5.62 per cent (5.63), July 2009s were at 5.93 per cent (5.95) and April 2013s were at 6.11 per cent (6.14).
- NZPA
<i>Currency:</i> Kiwi grinds lower in tandem with euro
AdvertisementAdvertise with NZME.