KEY POINTS:
The New Zealand dollar closed on the up today, after sticking to a very tight range for most of the session.
By 5pm, the kiwi was at US68.01c, above yesterday's closing level of US67.85c but well below its recent eight-month high of US68.24c.
Against the Australian dollar, it eased to A86.66c from A86.72c.
"We had some Aussie data out today, so the morning session it seemed like everyone was standing aside waiting for that to come out," one currency dealer said.
Traders may have also stepped aside to see whether the kiwi would hold today after withstanding US dollar strength overnight.
"Again, it looks like more to do with a lack of interest," he said.
"I think maybe the kiwi market as a whole, the longer term players are still maybe sitting a little bit short and were maybe hopeful of a small dip today, and that didn't happen.
"If we get above US68.80c you might see some panic buying, because that's quite a decent level."
Overnight, he tipped a range of US67.80-US68.20c.
"The US dollar's been the main driver for things, so if anything happens there those numbers are going to fly out the window."
The domestic calendar is light this week, but the market is awaiting the Reserve Bank's Monetary Policy Statement on December 7 with some caution. The central bank is expected to retain a tightening bias, but leave rates steady at 7.25 percent.
The Australian dollar firmed today after a healthy 0.8 percent rise in retail sales last month revised up the risk the Reserve Bank of Australia would have to tighten again to cool the economy.
The US dollar slipped, trimming gains made on upbeat US growth data that softened expectations the Federal Reserve could cut interest rates early next year.
Rates:
5.15 pm today 5pm yesterday
NZ dlr/US dlr US68.01c US68.86c
NZ dlr/Aust dlr A86.66c A86.72c
NZ dlr/euro 0.5164 0.5146
NZ dlr/yen 79.04 78.58
NZ dlr/stg 34.90p 34.77p
NZ TWI 66.92 66.72
Australian dollar US78.48c US78.25c
Euro/US dollar 1.3165 1.3189
US dollar/yen 116.20 115.79
- NZPA