The New Zealand dollar remained mired in a tight range yesterday, with all eyes on tomorrow's interest rate decisions.
"It has been another day of range trading for the kiwi," Bank of New Zealand forex manager Mike Symonds said.
At 5pm the kiwi had risen to US40.56c from Monday's close of US40.42c, while the aussie was at US49.42c from US49.19c yesterday.
"It is not surprising that we didn't see too much action on the day, with key events beginning tomorrow morning," Mr Symonds said.
Several banks including the Reserve Bank of New Zealand meet tomorrow to discuss interest rates.
The RB is widely expected to leave our Official Cash Rate unchanged at 5.25 per cent at 9am, while a few hours earlier the US Federal Reserve is forecast to cut rates by 50 basis points and the Reserve Bank of Australia should lop off 25 basis points later in the day.
Dealers expected the kiwi to trade between US40.40c and US40.90c ahead of that data.
"We are getting into the business end of the week and that (data) is going to set the scene for the kiwi dollar.
"As it stands at the moment, the kiwi looks okay and, if anything, in the short term there is still potential for a move towards the US41c area," Mr Symonds said.
On the crosses at 5pm the kiwi was buying A82.07c (A82.17c at yesterday's close), 48.82 yen (48.40), 27.43 pence (27.47), 0.8648 marks (0.8685), 0.6559 Swiss francs (0.6576) and 0.4422 euros (0.4441).
The trade-weighted index was at 48.14 (48.07), 90-day bill yields were at 5.28 per cent (5.29) and the monetary conditions index was at minus 1025 (minus 1031).
Among the bonds, the March 2002s were at 5.11 per cent (5.12), the April 2004s were at 5.42 per cent (5.48), the November 2006s were at 5.96 per cent (6.03), and the November 2011s were at 6.38 per cent (6.47).
- NZPA
<i>Currency:</i> Kiwi mired in tight range
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