The New Zealand dollar entered a consolidation phase today after the volatility of last week.
By 5pm the kiwi was at US54.53c from US54.66c at Friday's close, having traded between US54.39c and US54.63c for most of the day.
Dealers said the kiwi was rudderless at the moment, subject to the whims of offshore markets.
The Australian dollar also failed to make any ground against the greenback today, ending the New Zealand session at US60.39c from US60.68c on Friday.
The US dollar was well-supported against all the major currencies after surprisingly bullish US economic data cheered investors, with attention shifting away from the Iraq war.
A series of data on Friday surprised on the upside after the University of Michigan's preliminary April index of consumer sentiment jumped to 83.2 from 77.6 in March, beating economists' expectations for a more modest rise to 78.1.
The data helped soothe fears that the US-led war against Iraq and rising fuel prices would keep shoppers from stores.
Separately, the US Commerce Department said retail sales jumped 2.1 per cent in March, well above Wall Street's expectations and the biggest monthly gain since October 2001.
The data spurred speculation that the US economy may pick up momentum as the war winds down, supporting the dollar for now.
At 5pm in Wellington, the euro had eased to $US1.0742 ($US1.0779 on Friday), while the greenback was buying 120.63 yen (119.73).
Local dealers doubted tomorrow's Consumer Price Index (CPI) data will change the view that the Reserve Bank will not cut interest rates at its April 24 cash rate review, preferring to wait for the full economic review scheduled for June 5 to begin a new cycle of rate cuts.
Economists have forecast the CPI rose 0.5 per cent in the March quarter which means the index was up 2.5 per cent for the year against 2.7 per cent in 2002.
On the crosses at 5pm, the kiwi was buying A90.30c (A90.09c at 5pm on Friday), 0.5077 euro (0.5072), 34.70 pence (34.81), 0.7597 Swiss francs (0.7583) and 65.78 yen (65.42).
The Australian dollar was buying $NZ1.1066 ($NZ1.1101).
On the money market, 90-day bills were at 5.81 per cent (5.79 per cent), the monetary conditions index was at plus 143 (139) and the trade-weighted index was at 60.18 (60.14).
On the bond market, the April 2004 yields were at 5.47 per cent (5.42), the November 2006s were at 5.58 per cent (5.52) and the November 2011s were at 5.97 per cent (5.92).
- NZPA
<i>Currency:</i> Kiwi steady, hostage to offshore markets
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