The New Zealand dollar dipped below US44.60c briefly yesterday as the US dollar hitched a ride higher on the back of a Wall St rally.
Dealers said the kiwi broke key technical resistance to touch a low of US44.58c during the day after US stocks broke their longest losing streak in 19 months -- lending support to the ailing US dollar.
By 5pm the local unit had recovered slightly to end the local session at US44.78c from US44.82c at Tuesday's close.
"The kiwi has lost a bit of ground in the last couple of days, just as the world turns back towards the US dollar," one local dealer said.
"The US dollar has shown some strength in the last 24 hours and what we have seen today is a continuation of the kiwi and aussie easing off."
The fall in the antipodean units was shortlived, however, with both units recouping lost ground in afternoon trading.
"As we go into the night they look pretty good. They've held some good levels and it almost reads like a script really. They have gone down, bounced and now look to push higher," the dealer said.
He expected the kiwi to tackle US44.95c to US45c, while the aussie would likely make another break towards US54c to US54.20c.
The Australian dollar ended the local session at US53.89c from US54.03c at Tuesday's close.
On the crosses at 5pm the kiwi traded at A83.10c (A82.96c at Tuesday's close), 0.4972 euro (0.4961), 57.55 yen (57.37), 30.72 pence (30.75) and 0.7239 Swiss francs (0.7261).
The aussie was buying $NZ1.2036 ($NZ1.2054).
The monetary conditions index was at minus 467 (minus 478), the trade weighted index was at 53.29 (53.22), and 90-day bank bills were at 5.79 per cent (5.74).
On the debt market, the April 2004 bond yields were at 6.11 per cent (6.10), the November 2006s were at 6.60 per cent (6.58), and the November 2011s were at 6.75 per cent (6.73).
- NZPA
<i>Currency:</i> Kiwi tests lows, but bounces back
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