The New Zealand dollar held firm today during a subdued pre-holiday session.
By 5pm the kiwi had eased to US44.58c from US44.80c at Tuesday's close, while the aussie was at US53.88c (US54.07c).
One local dealer said the kiwi had dropped during the morning, and received little oomph from the key Australian Consumer Price Index (CPI) inflation figure.
Consumer prices, the key inflation gauge, rose 0.9 per cent in the three months ended March 31, higher than the 0.7 per cent forecast. The figure adds to expectations the Reserve Bank of Australia will raise rates next month.
"This afternoon's been pretty dead, everyone waiting for the Australian CPI which came out a touch higher but pretty much (on expectations). Since about midday it hasn't really moved," the dealer said.
"The kiwi's ground up a few points ... The market just seems to have got itself a bit long. We're still looking for US44.40/45c to provide the next support.
"I guess it's still buy on dips, it does feel a bit heavy and a few of those weaker long (positions) might have to be taken out."
The day's range was US44.48/63c, and the kiwi was unlikely to slip through the support level overnight. "If that goes, then I suppose it would go down through US44.20c."
In the medium term the kiwi was likely to have a run at US45c, although that depended on the aussie's direction.
However, with an Anzac Day holiday on both sides of the Tasman today the markets were likely to remain range-bound for the rest of the week.
On the crosses at 5pm, the kiwi was at A82.75c (A82.82c at Tuesday's close), 0.5019 euro (0.5020), 58.07 yen (58.20), 30.80 pence (30.90) and 0.7360 Swiss francs (0.7313).
The aussie was buying $NZ1.2090 ($NZ1.2061).
The monetary conditions index was at minus 461 (minus 443), the trade weighted index was at 53.37 (53.58), and 90-day bank bills were flat at 5.76 per cent.
On the debt market, the April 2004 bond yields were at 6.24 per cent (6.22), the November 2006s were at 6.72 per cent (6.68), and the November 2011s were at 6.89 per cent (6.88).
- NZPA
<i>Currency:</i> Kiwi rangebound, firm above US44.40c support
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