5.40pm
The New Zealand dollar drifted through today's session ahead of key announcements from the Reserve Bank's of New Zealand (RBNZ) and Australia (RBA) this week.
At 5pm, the kiwi was fetching US64.33c (from US64.05c at market's close yesterday), while the Australian dollar was at US72.89c (US72.50c).
The kiwi traded between US64.22c and US64.51c, not far off this year's high of US64.63c.
A National Bank currency dealer said the kiwi had moved in a tight range today ahead of the RBA's official cash rate (OCR) announcement tomorrow.
"With good retail numbers in Australia today the market thinks there's a chance of a 50 basis point hike for the OCR in Australia," he said.
The OCR in Australia, as in New Zealand, is 5.0 per cent.
The aussie was likely to test US73c tonight, the dealer said.
"The kiwi has been losing ground against the aussie as the market perception is 50/50 as to whether the RBNZ is going to hike the rate (on Thursday)," the dealer said.
At market's close, the kiwi was buying A88.29c (A88.43c), while the aussie was buying $1.1330 ($1.1308).
"Whatever happens (in New Zealand) there's an expectation that the monetary policy statement is going to point to a rate hike early next year."
At 5pm, the euro was at US$1.1982 (US$1.2026), while the greenback was buying 109.28 yen (109.78).
On the crosses, the kiwi was buying 0.5367 euro (0.5331), 70.30 yen (70.38), 37.40 pence (37.17), and 0.8338 Swiss francs (0.8261).
The trade weighted index was at 65.46 (65.29), while the monetary conditions index was at plus 527 (514), and 90-day bank bills were unchanged at 5.44 per cent.
On the debt market, April 2004 bonds were unchanged at 5.28 per cent, February 2006s were at 5.83 per cent (5.86) and November 2011s were at 6.24 per cent (6.25).
- NZPA
<i>Currency:</i> Kiwi quiet ahead of reserve bank reviews
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