The New Zealand dollar closed firmer and possibly primed to break out above its recent thinly traded ranges.
"It's dead again, but starting to feel a little better," one currency dealer said.
"The last month at least it's had the feeling of downside risk. But it's starting to feel it might break out the topside."
The kiwi finished at 40.77USc (40.64c on Tuesday). The dealer said topside resistance was around 40.90c-41c.
He said the aussie, closing locally at 50.93USc (50.76c), had held up well, contrary to expectations, after failing at 51.15USc a couple of times.
"Last week people were saying that wasn't a good sign. But it's still hanging round 51USc and I reckon it's building momentum and it's going to break through, and drag the kiwi along with it," the dealer said.
Also favouring an Australasian rally was the fact that worries about Argentina's ability to pay its debts seemed to be reducing.
Currency players will be looking to testimony from Federal Reserve chairman Alan Greenspan to the US Congress on the economy.
New York dealers are picking that Dr Greenspan will be optimistic about a bottom to the US downturn and the inflation outlook, which should bolster a greenback that eased overnight on negative factory production figures.
- NZPA
<i>Currency:</i> Kiwi primed for break-out
AdvertisementAdvertise with NZME.