KEY POINTS:
The New Zealand dollar loss ground today against its major trading partners after a wave of overnight selling, triggered by a negative bank report .
At 5pm today the kiwi was buying US68.83c against US69.62c yesterday.
Dealers said a major international bank had put a "sell" recommendation on the kiwi which prompted aggressive selling by several US funds.
The kiwi dollar hugged a tight range between US68.65/98c. It was little supported by a better than expected December trade deficit at $433 million .
"In the short-term, it looks a little bit oversold," Mark Elliott, a technical analyst at ANZ Investment Bank said.
"While we're below US69.40c, there's the prospect of further imminent downside."
He expected the kiwi to trade between US69.10c/US68.40c overnight.
The local currency also fell against the Australian dollar, trading at A89.15c against A90.08c at yesterday's close, which attracted local buyers.
The New Zealand dollar trade-weighted index fell to 68.70 from 69.48 at yesterday's close.
The Australian dollar was virtually unchanged against the US dollar at US77.25c. A new business survey suggested the Australian Reserve Bank will hold off hiking interest rates at its next review.
The US dollar remained steady against the euro and yen as dealers awaited a deluge of US economic data this week that could shed light on the course of monetary policy.
The Federal Reserve is expected to keep interest rates unchanged at 5.25 per cent when its meeting finishes tonight.
Reuters currency rates:
5pm today 5pm yesterday
NZ dlr/US dlr US68.83c US69.62c
NZ dlr/Aust dlr A89.15c A90.08c
NZ dlr/euro 0.5312 0.5370
NZ dlr/yen 83.69 84.78
NZ dlr/stg 35.06p 35.46p
NZ TWI 68.70 69.48
Australian dollar US77.25c US77.28c
Euro/US dollar 1.2962 1.2969
US dollar/yen 121.56 121.76
- NZPA