The New Zealand dollar was in low demand today, remaining capped under the elusive US47c mark.
The kiwi traded within a 30-point range, ending at US46.42c, down from US47.07c last night, mirroring the aussie's march downwards to US54.09c (US54.74c yesterday).
Bank of New Zealand currency strategist Stuart Ritson said in a daily commentary the kiwi remained hostage to global growth perceptions.
"The better performance of the United States stock indices over the past few days has alleviated some of the concerns about the global growth profile," Mr Ritson said.
"However, downbeat growth data in the form of US second quarter gross domestic product and the Chicago (manufacturers') index weighed on the New Zealand dollar in offshore trade."
Dealers said the kiwi appeared to be stalled at the lower end of a US47.20/46.20c range.
"Clearly we're tied up in the risk averse trade, so when the Dow falls, the kiwi comes under pressure," said a local dealer.
"If the Dow has a strong night, then I think that should be good for the kiwi, but if it has a bad night, it will just be another reason why they'll look to sell it."
Overnight the kiwi was expected to hover around similar levels to today, between US46.20/60c.
On the crosses at 5pm the kiwi had a mixed day, buying A85.85c (A85.98c at yesterday's close), 55.59 yen (56.41), 29.68 pence (29.95), 0.6887 Swiss francs (0.6972) and 0.4746 euro (0.4785).
The aussie was buying $NZ1.1651 ($NZ1.1631).
On the money market, 90-day bills were at 5.93 per cent (5.95), the trade-weighted index was at 53.22 (53.78) and the monetary conditions index eased to minus 459 (minus 405).
On the debt market, the April 2004 bonds were at 5.58 per cent (5.64), the November 2006 bonds were at 6.17 per cent (6.26), and the November 2011 bonds were at 6.43 per cent (6.52).
- NZPA
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