The New Zealand dollar was going nowhere fast today as institutions moved to square up their positions ahead of the end of the month and financial quarter.
By 5pm the kiwi was trading at US46.92c, compared with US46.95c at Friday's close -- having traded in a narrow US46.80c to US47.05c range for most of the day. Its aussie counterpart eased to US54.38c (US54.46c).
"It's financial year end for the aussie banks here and a lot of quarter end and half year end for a lot of other institutions so it's been very quiet today," Westpac chief currency dealer Basil Payne said.
He expected the local unit to remain rangebound overnight, trading between US46.80c and US47.20c.
"The US dollar has been sold off a little bit in Asia, so if anything we would expect maybe more of a test towards that US47.20c resistance rather than that US46.80c support," Mr Payn said.
Events of interest this week include the Reserve Bank of New Zealand's decision on interest rates on Wednesday -- with no change expected -- and a similar announcement from Australia's central bank.
However, the fortunes of global equity markets are likely to top the list of things to watch for the week.
On the crosses at 5pm the kiwi was trading at A86.29c (A86.22c at Friday's close), 56.82 yen (57.45), 29.96 pence (30.12), 0.6980 Swiss francs (0.7046), and 0.4769 euro (0.4804).
The aussie was buying $1.1598 ($1.1598).
On the money market, 90-day bills were at 5.89 per cent (5.86), the trade-weighted index was at 53.79 (54.03), and the monetary conditions index was at minus 410 (minus 388).
The April 2004 bonds yields were at 5.61 per cent (5.66), the November 2006 bonds were at 5.82 per cent (5.93), and the November 2011 bonds were at 6.04 per cent (6.09).
- NZPA
<i>Currency:</i> Kiwi rangebound as fiscal quarter/year end looms
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