The New Zealand dollar was little moved yesterday from Tuesday's closing levels, with no action to buoy it back towards recent highs again.
By 5pm yesterday the kiwi was at US49.82c, down slightly from Tuesday's close of US49.87c, while the aussie was at US56.05c (US56.08c).
"Capitulation selling out of New York overnight pushed it down. There was buying of US dollars across the board ..." ANZ Investment Bank dealer Mark Elliott said.
"(Kiwi) got oversold around those levels (US49.40c) ... and the market's just reacting back. There's no news, it's just market dynamics."
The kiwi's range yesterday was US49.40/83c, and he picked it to trade between US49.85/95c overnight, or lower.
"The whole move down from US50c has been the liquidation of long speculative positions that were put in place," Mr Elliott said.
In offshore trade, the greenback's two-week rally against the major currencies paused after a rebound in November US consumer confidence from a nine-year low was not enough to satisfy investors who bet on a bigger advance.
In Wellington at 5pm yesterday the US dollar was buying 121.75 yen, compared with 122.04 yen last night, while the euro was at US99.34c (US99.17c).
Against the aussie, the kiwi was trading at A88.89c last night, a far cry from its four-year high of A89.60c last week, and compared with A88.94c on Tuesday.
The kiwi also fell against most of its other major trading partners, trading at 0.5015 euro (0.5029 Tuesday), 60.66 yen (61.87), 32.06 pence (31.87), and 0.7385 Swiss francs (0.7407).
The Australian dollar was buying $1.1248 ($1.1245).
The trade weighted index was at 56.81 (56.87), the monetary conditions index was at minus 133 (minus 128), and the 90-day bank bill yield was 5.92 per cent (5.89).
On the bond market, the April 2004s were at 5.68 per cent (5.72), the November 2006s were at 5.95 per cent (6.01), the November 2011s were at 6.29 per cent (6.37), and the April 2013s were at 6.34 per cent (6.41).
- NZPA
<i>Currency:</i> Kiwi remains constant
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