The New Zealand dollar started off with a flurry of activity this morning but traded in a tight range ahead of several key announcements, a forex expert said.
At 5pm, the New Zealand dollar was buying US58.49c from US58.55c at market's close yesterday, while the aussie was at US66.46c (US66.42c).
In today's trading the kiwi traded between US58.48c and US58.78c.
Key support was at US58.40c, while key resistance crept in at the US58.80/90c region.
BNZ currency strategist Sue Trinh said the kiwi started with a "bit of a hiss and a roar" at the end of currency trading in New York.
"A few people are taking profits on the Reserve Bank of Australia's (RBA) announcement next week," she told NZPA today.
"People predicting a 25 point cut to the official cash rate. They're (investors) just limiting their risk somewhat."
The expected rate cut by the RBA was seen as an undertone for the kiwi in recent trading, she said.
Meanwhile, the US Federal Reserve announces whether it will cut benchmark interest rates by a quarter or half a percentage point tomorrow morning, New Zealand time.
"The first market to react will probably be the bond market, so we'll be watching that for implications of the forex market," Ms Trinh said.
Against the aussie the kiwi was A88.01c (A88.16c).
The euro,was at $US1.1521 at 5pm in Wellington from $US1.1550 at the same time last night.
The US dollar was buying 117.57 yen (117.93).
On the crosses at market's close, the kiwi was buying 68.77 yen (69.05), 35.14 pence (35.11), 0.7762 Swiss francs (0.7751), and 0.5077 euro (0.5067).
The monetary conditions index was at plus 233 (235), the trade-weighted index was at 61.98 (62.03) and 90-day bank bill yields were at 5.24 per cent (5.20).
The February 2005 yields were at 4.77 per cent (4.76), the November 2006s were at 4.80 per cent (4.80), and the November 2011s were at 5.11 per cent (5.13).
- NZPA
<i>Currency:</i> Kiwi trades in tight range ahead of key announcements
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