The New Zealand dollar ended flat yesterday after being bumped up by merger and acquisition rumours overnight.
At 5pm, the kiwi was at US41.96c, up on yesterday's US41.75c close, but below its US42.06c opening level.
The Australian dollar was equally moribund at US51.41c (US51.42c at 7.30am NZT), despite a decision by the Reserve Bank of Australia to hold fire on rates this morning, just days out from a federal election.
Dealers said the Australasian currencies were bid up overnight on M&A rumours surrounding Australian banks, but that sentiment failed to continue throughout the day.
"There was nothing happening locally today. We traded in a six-point range. It is just deathlike at the moment," one local currency dealer said.
Most currencies around the globe had been quiet pending the US Federal Reserve announcement on interest rates yesterday morning.
The Fed delivered a 50 basis point cut - bang on market expectations - taking key US interest rates to 2 percent, a four-decade low.
The move failed to inspire buying, with the US dollar falling to 120.87 yen by the close of local trade, from 121.57 late Tuesday.
New Zealand's Reserve Bank is expected to follow suit with a 50 bps cut on November 14, taking our official cash rate to 4.75 per cent.
Dealers said the kiwi would likely trade between US41.95c and US42.15 overnight, ahead of today's Household Labour Force Survey data.
Economists polled by Reuters are picking the data will show employment growth of 0.3 per cent for the quarter, with unemployment steady at 5.2 per cent - a 13 year low.
On the cross rates at 5pm, the kiwi was buying 46.83 euro (46.55), 50.71 yen (50.75), 28.75 pence (28.63), 91.59 marks (91.03), and 69.01 Swiss francs (68.52).
The kiwi slipped a little against the Australian dollar, buying A81.60c (A81.76c). The Australian dollar was buying $NZ1.2253 against $NZ1.2232 yesterday.
The trade-weighted index was at 49.80 (49.66), and the Monetary Conditions Index tightened to minus 896 (minus 907).
Ninety-day bank bills were at 4.88 per cent (4.91 per cent), the March 2002 bonds were at 4.76 per cent (4.81), the April 2004s were at 4.99 per cent (5.06), the November 2006s were at 5.52 per cent (5.58), and the November 2011s were at 6.04 per cent (6.07).
- NZPA
<i>Currency:</i> Kiwi static despite interest rate news
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