The New Zealand dollar bobbed up on a change of sentiment yesterday and looked set to head over the 42USc level overnight.
At 5 pm the kiwi closed on its highs at 41.81c, up from 41.41c at Wednesday's close, while the Australian dollar rose to 51.88USc from 51.08c.
The aussie came close to nudging the 52USc mark in New York, and both antipodean currencies maintained their strength yesterday.
One local dealer said the kiwi and aussie were benefiting from a change of sentiment, with buyers entering the market to lift the kiwi from the 41c to 41.40c range it has been mired in for several weeks.
"It's broken out of that range we were in. Kiwi hasn't given up any of the gains from overnight," he said.
"Considering we've been stuck in a 40-point range for the best part of several weeks it's done really well, and it's doing really well to stay up there. Obviously the aussie's doing well also, and there's a good chance they'll push on overnight."
There was nothing concrete behind the rise, although the euro was hanging in there as well.
"People are picking the US dollar to start turning at some stage and maybe we're seeing a bit of that."
HSBC said in a daily commentary that massive buying of the Australian dollar by a US investment bank - coupled with strong retail sales data - had seen the aussie unit break the shackles of a two-year downtrend.
- NZPA
<i>Currency:</i> Kiwi poised to test 42USc
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