The New Zealand dollar was range-bound in quiet trade yesterday, but closed on its highs and looked set to have another crack at US47c overnight.
By 5pm the kiwi was at US46.91c from US46.85c at Friday's close, having traded between US46.75c and US46.95c during the session, while its Australian trading mate was at US54.62c (US54.52c).
"It's been one of the quieter days we've had for some time," Deutsche Bank dealer Graeme Blackwood said.
"I'd be expecting kiwi to go higher overnight, through US47c and moving onwards. Maybe we've seen the correction and the recent down move is over and we're starting the new move back towards US48c."
The focus today will be on this week's US trade data, which economists forecast will show the country's massive deficit narrowing a touch in June to $US37.29 billion ($NZ81.1 billion) from May's record $US37.64 billion gap.
The deficit means Americans are sending more money abroad to purchase imports than they get in return, which naturally weighs on the dollar unless the US can attract enough capital inflows to offset the outflows.
On the crosses at 5pm, the kiwi was buying A85.91c (A85.93c at Friday's close), 55.35 yen (55.11), 30.41 pence (30.54), 0.6973 Swiss francs (0.6982), and 47.57 euro (0.4777).
The aussie was trading at $NZ1.1640 ($NZ1.1644).
On the money market, 90-day bills were at 5.89 per cent (5.87), the trade-weighted index was at 53.48 (53.47) and the monetary conditions index was at minus 439 (minus 440).
On the debt market, the April 2004 bonds were at 5.77 per cent (5.72), the November 2006 bonds were at 6.17 per cent (6.10), and the November 2011 bonds were at 6.42 per cent (6.34).
- NZPA
<i>Currency:</i> Kiwi poised to retest US47c
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