The New Zealand dollar drifted through a quiet session today to end the day little-changed.
By 5pm today the kiwi was at US54.95c, down from US55.08c on Friday. Its Australian counterpart gained a little to close at US59.35c (US59.28c), while on the trans-Tasman cross the kiwi softened to A92.59c (A92.93c).
ANZ Investment Bank chief foreign exchange dealer Murray Hindley said the market had been quiet today with holidays in Australia and Auckland.
The kiwi traded between US54.85 and US55.00c today, with support at US54.70c and resistance at US55.20c.
"There was a little bit of interest to sell it against the aussie in the early Asian session but that petered out and it's closing towards its opening levels," Mr Hindley said.
"Obviously we've got to watch out for this report by (UN weapons inspector) Hans Blix that's going to be released tomorrow, and obviously (President) Bush's state of the nation address on Tuesday.
"I think it's going to have some implication for the New Zealand dollar, based on whether we see US dollar weakness or a change in sentiment and US dollar strength back in the marketplace."
Intensifying war concerns have punished the greenback, with investors looking for safe havens in major currencies such as the euro and Swiss franc.
US Secretary of State Colin Powell told sceptical Europeans on Sunday that the United States is willing to attack Iraq alone if allies peel away.
BNZ currency strategist Stu Ritson believed the US dollar would remain the focus of trading early this week and predicted some consolidation was likely for the kiwi.
He said a pullback last week to US53.98c after the Reserve Bank's official cash rate review would have seen some speculators unwind their long-term positions, and things were returning to a more balanced level.
In Wellington at 5pm the euro was trading at $US1.0841 after hitting a three-year high of $1.0856 and up from Friday's $US1.0762.
Against the yen, the greenback was trading at 117.85 (118.02).
At 5pm New Zealand's trade-weighted index softened to 60.28 (60.56), 90-day bank bills were at 5.83 per cent (5.84), and the monetary conditions index was at plus 154 (plus 178).
Against other major currencies the kiwi was at 0.5068 euro (0.5116), 64.85 yen (65.00 yen), 33.63 pence (33.85), and 0.7434 Swiss francs (0.7493).
The Australian dollar was at $NZ1.0801 ($NZ1.0762).
On the debt market the April 2004 government bonds were at 5.51 per cent (5.54), the November 2006s were at 5.68 per cent (5.69), the November 2011s were at 5.99 per cent (6.00), and the April 2013s were at 6.02 per cent (6.03).
- NZPA
<i>Currency:</i> Kiwi meanders to close below US55c
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