The New Zealand dollar continued consolidating yesterday, slipping during the local session to close on its lows.
At 5pm the kiwi traded at US43.88c, not far from last night's US43.80c, while the aussie rose to US53.03c from US52.95c on Wednesday.
One local dealer said the kiwi opened around US44.10c, and slid during the day to bottom out about US43.82c.
"We haven't had much of a bounce, (and) the aussie's looked reasonably weak all day.
"I'm expecting overnight for it to push a bit higher, to US43.95c, but it looks to be capped around the US44c again. Really, we need to consolidate in order to push higher if we're going to sustain these rallies, otherwise I could see us quite easily drift off," he said.
Key support on the down side looked to be around US43.65/70c.
Interest in the kiwi remained firm, however.
"There's still people looking and real money buying, interest in New Zealand yields and the bond market, etc.
"Until we push through US44.50c we're in danger of failing, it's a touch-and-go range for it at the moment," the dealer said.
Kiwi had held very well against the aussie with a range of A82.50c and A83c, "and there's good selling of kiwi against the aussie up to A83c at the moment".
On the crosses at 5pm the kiwi traded at A82.61c (A82.73c at Wednesday's close), 0.4978 euro (0.4987), 58.03 yen (59.14), 30.55 pence (30.51) and 0.7277 Swiss francs (0.7292).
The aussie was at $NZ1.2095 ($NZ1.2086).
The monetary conditions index was at minus 516 (minus 513), the trade weighted index was steady at 52.95, and 90-day bank bills were at 5.60 per cent (5.63).
On the debt market, the April 2004 bonds were at 6.24 per cent (6.29), the November 2006s at 6.70 per cent (6.77) and the November 2011s at 6.84 per cent (6.91).
- NZPA
<i>Currency:</i> Kiwi in consolidation phase, closes on lows
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