Demand for the New Zealand dollar eased a little yesteray but it remained well bid, tantalising analysts with the promise of another surge.
After hitting seven month highs earlier this week, the kiwi eased a little to US43.88c, slightly weaker than Thursday's close of US44.01c.
The aussie also stood firm at US53.05c (US53.01c last night).
In the short-term, dealers said the kiwi was in consolidation mode following a "pretty impressive week".
But Murray Hindley, chief forex dealer for ANZ Investment Bank, said the signs were good for another show of strength.
"We may see some small weakness back to US43.60c but I would still be looking to buy into any dips that we see. I still think there's a chance that we can continue to see this currency push higher.
"Some technicians are now talking it into the low 45s...over the next month or so, depending on what other data comes out.".
Overnight the kiwi was expected to trade between US43.65c and US44c.
The kiwi sank back on the trans-Tasman cross while rising against other currencies. On the crosses at 5pm the kiwi was buying A82.75c (A83.03c at Thursday's close), 0.4976 euro (0.4971), 58.04 yen (57.80 yen), 30.74 pence (30.80) and 0.7279 Swiss francs (0.7271).
The aussie was at $NZ1.2086 ($NZ1.2048).
The monetary conditions index tightened slightly to minus 517 (minus 522) as did 90-day bank bills at 5.55 per cent (5.53).
On the debt market, bond yields also continued their steep rise. The April 2004 bonds were at 6.40 per cent (6.35), the November 2006s were at 6.88 per cent (6.84) and the November 2011s were at 6.99 per cent (6.99).
- NZPA
<i>Currency:</i> Kiwi takes a breather but promises more
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