KEY POINTS:
The New Zealand dollar swung around today but ultimately closed where it began, despite news the economy's growth was weaker than forecast.
The kiwi sank ahead of third quarter gross domestic product this morning, having touched an 11-month high after yesterday's less grim than expected current account deficit.
By 5pm, the NZ dollar was at US69.57c after closing at US69.88c yesterday. Against the Australian dollar, it was buying A88.55c from yesterday's A89.02c close.
One trader said the kiwi was reasonably bearish today, and may test US69.20c overnight.
"We've had a bit of a range today but basically we sold off after the (GDP) figures, bounced back a wee bit, sold off again and we're back basically close to where we started the day," he said.
"We felt US69.80c is probably the top of the range at the moment. We need a further breakout of the US dollar one way or another."
The kiwi traded between US69.25c and US69.83c during the day, reflecting the currency's swing around.
"We've seen some good business today, but it is starting to slow down a bit from our corporate side," he said.
The economy expanded by 0.3 per cent in the September quarter, less than the 0.6 per cent expected by financial markets and the Reserve Bank's 0.7 per cent forecast.
Although the data surprised on the downside, more recent fourth quarter indicators have shown consumer spending and the economy in general remained fairly robust, keeping the chance alive of an interest rate rise next year.
Yesterday the kiwi got a boost from better than expected current account data. The September quarter current account worsened to $4.6 billion, compared with the June quarter deficit of $3.1b but was better than the $5b forecast by economists.
The latest data is the last for the year, and trading is expected to be light tomorrow ahead of the Christmas and New Year holidays.
The US dollar steadied ahead of US growth and manufacturing data that could help assessments of whether the Federal Reserve will cut interest rates next year.
The yen was near a record low against the euro and a six-week trough versus the dollar.
5pm today 5pm yesterday
NZ dlr/US dlr US69.57c US69.88c
NZ dlr/Aust dlr A88.55c A89.02c
NZ dlr/euro 0.5273 0.5277
NZ dlr/yen 82.35 82.50
NZ dlr/stg 35.37p 35.40p
NZ TWI 68.56 68.76
Australian dollar US78.56c US78.48c
Euro/US dollar 1.3192 1.3243
US dollar/yen 118.38 118.08
- NZPA