KEY POINTS:
The New Zealand dollar was largely trapped below US67c in uneventful trading today, with focus trained on the glamour Melbourne Cup horse race.
Around 5.30pm, the kiwi was little changed against the US dollar to buy US66.89c from US66.95c yesterday. The currency lost more ground against the Australian dollar, to A86.57c from A86.96c yesterday.
"The focus has certainly been on other things and left trading subdued in our time zone," said ANZ Investment Bank chief foreign exchange dealer Murray Hindley.
The kiwi traded between US66.75c and US67.03c during the session.
"Pretty hard to see it too much outside that range tonight, there's really nothing until Thursday's Household Labour Force Survey. I think we're going to be confined to recent ranges," Mr Hindley said.
The market expects a slight rise in the unemployment rate from the current 3.6 per cent, the lowest level since the Household Labour Force Survey began in March 1985.
"That's going to be the key data to watch for the next move for New Zealand. If we saw unemployment data come in lower then certainly I'd say that would point to further pressures on the RBNZ," he said.
Overnight, the kiwi was likely to find support around the day's low of US66.75c, and resistance at US67.10c.
The US dollar slipped against the yen today ahead of US congressional elections, as some investors booked profits on gains made on expectations the Federal Reserve will not lower interest rates soon.
The US currency also came under pressure after San Francisco Fed president Janet Yellen said late yesterday that some countries with excess savings may consider investing less of their funds in dollar-denominated assets at some point.
Reuters currency rates:
5.35pm today 5.35pm yesterday
NZ dlr/US dlr US66.89c US66.95c
NZ dlr/Aust dlr A86.57c A86.96c
NZ dlr/euro 0.5244 0.5270
NZ dlr/yen 78.88 79.06
NZ dlr/stg 35.17p 35.23p
NZ TWI 66.83 67.02
Australian dollar US77.28c US76.98c
Euro/US dollar 1.2757 1.2706
US dollar/yen 117.91 118.08
- NZPA