The New Zealand dollar held its ground yesterday, despite a slightly weaker Australian dollar.
One local dealer said the kiwi had a "surprisingly bid" tone, with buyers lining up.
"I think you might have seen a bit of kiwi/aussie buying going through, nothing significant, but it definitely had that tone to it.
"It's been to a high of US46.30c, look for support down towards US45.95/46.00c, and resistance around US46.50c," he said.
"I would look for one more dip back towards US46.00c before you see any significant rally. Everything's coming off and looking pretty soft -- aussie had a look above US54c and now that's back below US53.90c, euro when I walked in this morning was US98.20c and that's just been under US97.60c."
He was optimistic for the kiwi's short-term outlook.
"As soon as these bids disappear in the kiwi look for it to maybe dribble off, look for a bit of a dip in which to buy for a rally."
In offshore trade, the US dollar gained solidly against the yen in Tokyo, supported by bargain-hunting as sentiment improved somewhat after big gains in US stocks. However, dealers said the greenback's underlying trend remained bearish.
By 5pm the kiwi traded at US46.25c, up from Wednesday's close of US46.00c, while the aussie had slipped to US53.88c (US54.01c yesterday).
On the crosses at 5pm the kiwi was buying A85.66c (A85.28c at last night's close), 54.50 yen (53.95), 30.20 pence (29.93), 0.6928 Swiss francs (0.6811), and 0.4739 euro (0.4657).
The aussie was trading at $1.1646 ($1.1730).
On the money market, 90-day bills were at 5.88 per cent (5.86), the trade-weighted index was at 52.98 (52.48) and the monetary conditions index tightened to minus 486 (minus 536).
On the debt market, the April 2004 bonds were at 5.70 per cent (5.60), the November 2006 bonds were at 5.99 per cent (5.95), and the November 2011 bonds were at 6.29 per cent (6.18).
- NZPA
<i>Currency:</i> Kiwi rises despite easing Aussie
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