The New Zealand dollar traded sideways on heavy volume yesterday, but looks set to resume its assault on US49c.
By 5pm the kiwi was at US48.75c, little changed from its US48.72c open, but up on Tuesday night's US48.60c close.
"Euro looks fairly positive, kiwi looks fairly positive so I wouldn't be surprised to see it move higher over the course of the night," Deutsche Bank dealer Tim Robinson said.
Volatile equities markets in the United States continued to weigh on the greenback, Mr Robinson said.
Technology stocks slumped but the broader market ended flat on Tuesday as more violence erupted in the Middle East and a leading brokerage cut its profit outlook on bellwether International Business Machines Corp, overshadowing bright economic data.
Mr Robinson expected the kiwi to range between US48.65c and US48.95c overnight, before having another crack at US49.50c in the medium term.
"A lot of people were looking for a retracement. We got down to US48.30c which is the level we were looking for and it's bounced reasonably nicely from there," he said.
"We currently think that it's going to roll back up towards the highs around US49.50c."
The Australian dollar ended the local session at US56.60c from US56.02c Tuesday.
On the crosses at 5pm the kiwi was buying A86.14c (A86.76c at Tuesday's close), 60.59 yen (60.50), 32.66 pence (32.84), 0.7549 Swiss francs (0.7575) and 0.5110 euros (0.5134).
Against the kiwi the aussie was buying $NZ1.1605 from $NZ1.1526 on Tuesday.
On the money market 90-day bills were at 6.00 per cent (6.02), the trade-weighted index was 56.35 (56.39) and the monetary conditions index tightened to minus 167 (minus 161).
The April 2004 bonds were at 6.01 per cent (6.04), the November 2006 bonds were at 6.35 per cent (6.47), and the November 2011 bonds were at 6.58 per cent (6.64).
- NZPA
<i>Currency:</i> Kiwi looks ready to tackle US49c again
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