The New Zealand dollar followed the aussie down yesterday to close at 39.83USc after opening at 39.93c.
The kiwi had finished with big moves down overnight Wednesday, when it fell half a cent as the euro plummeted to a record low of 82.46USc.
Paul Walkinton of Deutsche Securities said the kiwi moved within a fairly tight range of 39.76c-95c. "It was a very, very low volume day, really just marked up and down on the back of aussie moves," Mr Walkinton said.
"The Australian dollar's still under a lot of pressure. It's failed big time on the top side.
"While there hasn't been a lot of evidence of kiwi-US sellers, I think the kiwi is going to suffer when the aussie breaks under 51.50USc. I think the kiwi's not going to go down as quickly as the aussie, but it's now heavy at that familiar resistance area of 40.10-20USc. We should see a renewed assault on the 39.20c area in the next couple of days."
The large amount of bond-related buying in kiwi late last week and earlier this week dried up but could resurface on any dips, he said.
The euro hit rock bottom after the release of a draft communique issued by a G-20 meeting of rich and emerging economies in Montreal did not comment specifically on the euro as the market might have expected.
Markets had hoped the G-20 would offer hints on a euro rescue mission.
- NZPA
<i>Currency:</i> Kiwi slides as euro plummets
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