The New Zealand dollar was on the wane yesterday, but was picked to carry on above US50c after a breather.
By 5pm the kiwi was at US50.15c, compared with Friday's close of US50.276c, while the aussie was at US56.28c (US56.26c).
ANZ Investment Bank senior dealer Mark Elliott said the kiwi reached a high of US50.33c today, and closed above its low of US50.05c.
"The aussie has drifted back off against the US dollar as well. There's nothing driving (kiwi) really, what we're seeing is just a bit of profit-taking," Mr Elliott said.
"It's come up 100 points since last week ... it looks like the market's consolidating on the top end of the range. I wouldn't be surprised if we go a bit lower overnight, maybe US49.80/90c. I would imagine that would be a very good level to buy kiwi.
"I think this is a genuine break above US50c, and I would think that over the next few weeks we're going to go quite a bit higher, maybe another US cent or two," he said.
The trans-Tasman cross was likely to lose some momentum, and he picked the kiwi to begin retreating after hitting a four-year high of A89.60c last week.
The kiwi closed yesterday at A89.12c, compared with its A89.03c close on Friday.
BNZ chief foreign exchange dealer Mike Symonds said the kiwi was unlikely to see much of an impact from Air New Zealand's proposed deal to sell Qantas a 22.5 per cent stake for $550 million.
The much-speculated proposal was well factored into the foreign exchange market, but it was only a one-off and would not affect long-term trends, Mr Symonds said.
The deal announced yesterday has yet to get regulatory approval, which was far from assured.
The trade weighted index, which soared to a 2-1/2-year high of 58.21 over the weekend, was at 57.16 compared with Friday's close of 57.18.
The monetary conditions index was little changed at minus 103 (minus 102), and the 90-day bank bill yield was at 5.89 per cent (5.91).
On the other crosses, the kiwi was at 0.5044 euro (0.5012 on Friday), 61.55 yen (61.71), 31.84 pence (31.77), and 0.7426 Swiss francs (0.7367).
The Australian dollar was buying just $1.1220 ($1.1192).
In the bond market, the April 2004s were at 5.74 per cent (5.73), the November 2006s were at 6.03 per cent (6.01), the November 2011s were at 6.41 per cent (6.36), and the April 2013s were at 6.46 per cent (6.40).
- NZPA
<i>Currency:</i> Kiwi rests before heading higher
AdvertisementAdvertise with NZME.