The dollar rose yesterday after its Australian counterpart survived another test of consumer confidence to stage a rally above 50USc.
At 5pm, the kiwi was at 40.40USc from 40.10c at Tuesday's close, while the aussie powered to 50.12USc from 49.39c.
"The aussie has staged a good rally, and the kiwi has rallied on the back of that, but it has certainly underperformed," Bank of New Zealand forex manager Greg Ball said.
A survey released yesterday showed Australian consumer confidence improved slightly in April. The Westpac-Melbourne Institute index of consumer sentiment rose 1.9 per cent in April to 88 per cent from 86.4 per cent in March.
This compares with an index average of 101.8 in the year to February 2001.
While positive, the result showed households planned to save rather than spend any of the benefits from recently lowered mortgage costs.
Australia's official cash rate has been cut by 125 basis points to 5 per cent so far this year, with homeowners emerging the biggest winners as wholesale savings were passed on by banks.
Although the aussie's rally led the kiwi higher against the greenback, the result was not so positive on the kiwi/aussie cross, with the kiwi falling to 80.83Ac from 81.22c.
- NZPA
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