It was a case of 'Monday-itis' as the New Zealand dollar traded in a tight range today following its spurt of volatility late last week, a broker said.
At market close today, the New Zealand dollar was buying US57.12c from US57.42c at 5pm on Friday.
It traded between US57.12c and US57.30c today.
The aussie was at US64.72c (US64.80c).
ANZ Investment Bank senior dealer Mark Elliot said the trading range was very narrow, closing near its low.
"It's a Monday, a Tokyo holiday, (and after) a big volatile day on Friday, and the market just seems to be consolidating in a narrowing range," Mr Elliot told NZPA.
"I would say, reasonably confidently, that the lows we saw last week after that big drop will be taken out again."
He expected the kiwi could drop to about US56.00/20c, possibly even as low as the US53c mark.
"What's happening is we're undergoing a retracement proportionate to the last 11 or 12 months uptrend," Mr Elliot said.
On Friday morning, the kiwi plummeted 140 points on the back of the aussie.
Against the aussie at 5pm today, the kiwi was A88.25c (A88.61c).
The euro, was at US$1.1285 at 5pm in Wellington from US$1.1227 at 5pm on Friday.
The US dollar was buying 118.38 yen (119.15).
On the crosses at 5pm, the kiwi was buying 67.63 yen (68.41), 36.09 pence (36.02), 0.7770 Swiss francs (0.7849), and 0.5061 euro (0.5114).
The monetary conditions index was at plus 169 (203), the trade-weighted index was at 61.36 (61.78) and 90-day bank bill yields were at 5.09 per cent (5.08).
The February 2005 yields were at 4.98 per cent (4.94), the November 2006s were at 5.16 per cent (5.12), and the November 2011s were at 5.57 per cent (5.54).
- NZPA
<i>Currency:</i> Kiwi trades in tight range
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