The New Zealand dollar took a back seat today as an energised Australian dollar took centre stage.
By 5pm it was at US54.02c compared with US54.13c at yesterday's close, but peaking at US54.22c during the session.
It was overshadowed by the aussie dollar which was boosted by a large buy order which pushed it as high as US58.90c before easing back to US58.68c at day's end (US58.60c yesterday).
"That's helped the kiwi push back above US54c and push towards US54.20c but it's been unable to get through that area," said Mike Symonds, chief currency dealer with the Bank of New Zealand.
He picked the kiwi to trade between US53.75c and US54.15c overnight.
Over the next few weeks Mr Symonds predicted the US dollar would go lower, to the benefit of the kiwi. But on other crosses, particularly the kiwi-aussie, "we just get the impression the kiwi may well lose a bit of ground as people look at the relative performance".
"The kiwi's been one of the star performers over 2003 and I guess there is a view out there there is probably more potential with some of these other currencies like the aussie and the euro."
Meanwhile, the United States dollar hunkered at a three-year low against the euro trading on unimpressive US retail sales. The euro was at its strongest since late October 1999, near $1.06 against the dollar, closing in Wellington at 1.0557.
It also touched a four-month low versus the yen in New York trading, plummeting to 117.95 yen but closing here at 118.19 yen.
Against its major trading partners at 5pm the kiwi was buying A92.08c (A92.38c), 0.5118 euro (0.5129), 63.85 yen (64.35), 33.64 pence (33.76), and 0.7490 Swiss francs (0.7494).
The Australian dollar was at $NZ1.0863 (1.0825).
The trade-weighted index was at 59.83 (60.03), 90-day bank bills were at 5.87 per cent (5.89), and the monetary conditions index was at plus 120 (plus 139).
On the debt market, the April 2004s were at 5.65 per cent (5.70), the November 2006s were at 5.83 per cent (5.89), the November 2011s were at 6.11 per cent (6.16), and the April 2013s were at 6.14 per cent (6.19).
- NZPA
<i>Currency:</i> Kiwi upstaged by rampant Aussie
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