The New Zealand dollar remained flat yesterday, refusing to budge in the downward direction expected of it earlier in the week.
At 5pm the kiwi traded at US41.82c, not far from yesterday's US41.85c close, while the aussie was at US51.36c from US51.34c Tuesday.
One local dealer said the kiwi had found some support above US41.70c.
"We're still waiting to take a bit of direction from the aussie - the aussie's not feeling that flash but yet the kiwi's holding in there reasonably well," the dealer said.
The kiwi remains rangebound, trading between a narrow US41.72/84c during the day and it was likely to see a slightly wider US41.70/90c range overnight.
"Aussie does have good bids down below, but it does feel a bit heavy, so the kiwi might come off with that again but not as quickly."
The kiwi's next major support, at which buyers should start emerging, is US41.65/70c.
Offshore, the pattern continued of US dollar strength ahead of Federal Reserve chairman Alan Greenspan's speech overnight, and yen weakness in the face of an expected disappointing anti-deflation package.
Dr Greenspan's semi-annual testimony to Congress is always a signal event for financial markets, but Wall Street will closely read between the lines after he appeared to swing from cautiously downbeat to guardedly upbeat in two January speeches.
On the crosses at 5pm, the kiwi traded at A81.41c (A81.35c at Tuesday's close), while the aussie was buying $NZ1.2280 ($NZ1.2295).
Against the other major currencies the kiwi was at 56.31 yen (55.99), 29.54 pence (29.33), 0.7146 Swiss francs (0.7097), and 0.4839 euro (0.4810).
The trade weighted index was at 51.22 (51.05), the monetary conditions index was at minus 744 (minus 761), and 90-day bank bills were steady at 4.98 per cent.
On the debt market, the March 2002 bonds were steady at 4.74 per cent, the April 2004 bonds were at 5.81 per cent (5.69), the November 2006s were at 6.41 per cent (6.33), and the November 2011s were at 6.66 per cent (6.59).
- NZPA
<i>Currency:</i> Kiwi remains flat
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