KEY POINTS:
The New Zealand dollar quietly consolidated overnight gains today and looked likely to test higher tonight.
The kiwi dollar traded in a narrow range and closed near its session highs at US66.50c, compared with yesterday's US66.10c closing level.
Dealers predicted it would find resistance around US66.80c tonight.
Still coasting on stronger-than-expected retail sales, the New Zealand dollar continues to attract yield-seeking buyers and squeezed up to US66.64c when soft US consumer spending data was released last night.
"It didn't have too much impact on the US dollar but the kiwi market was short from the previous day and just failed to go down," ANZ senior dealer Mark Elliott said.
The kiwi also strode higher than most of its trading partners and the TWI closed at 66.57 (66.10 yesterday).
The kiwi gained strongly against the aussie at A86.74c, up from A86.42c yesterday , and gained ground against the euro at 0.5201 (0.5152) and the yen at 78.68 (77.90 yen).
Investors also drew confidence from a strong manufacturing index for October and an 0.8 per cent increase in third quarter national activity in a regional trends survey.
Offshore, the US dollar held gains scored after data showed a slowdown in inflation, reinforcing views that interest rates will remain steady.
The euro slid to $1.2784 compared with $1.2831 yesterday, while the greenback edged up to 118.32 yen (117.86).
Reuters currency rates:
5pm today 5pm yesterday
NZ dlr/US dlr US66.49c US66.10c
NZ dlr/Aust dlr A86.74c A86.42c
NZ dlr/euro 0.5201 0.5152
NZ dlr/yen 78.68 77.90
NZ dlr/stg 35.22p 34.98
NZ TWI 66.57 66.10
Australian dollar US76.66c US76.52c
Euro/US dollar 1.2784 1.2831
US dollar/yen 118.32 117.86
- NZPA