The kiwi pulled back yesterday from its highs last week above US50c, in a session lacking any drama.
By 5pm the kiwi was at US49.87c, down from Friday's close of US49.97c, but well down on the 2-1/2-year high of US50.17c hit during Friday's local session.
The Australian dollar was fairly static at US56.34c (US56.30c at Friday's local close).
One local dealer said it had been a "bit of a nothing day".
"The kiwi's just drifted off from selling first up in the morning, and it's been sitting quietly ever since.
"The resistance is above US50c, and we haven't breached that so at the moment we're just seeing whether we can get through US50.20c," he said.
The kiwi's range during the day was US49.80/95c, with low volumes despite speculation the kiwi was a good buy on dips because many observers expected it to continue rising.
The dealer picked it to trade in a slightly wider range overnight of US49.75/US50.05c.
Bank of New Zealand currency strategist Stu Ritson said in a daily commentary that the kiwi could be in for a period of consolidation after rising more than 1 per cent in the past week.
"The '50-handle' on the New Zealand dollar is likely to bring increased supply in the short term which will slow the New Zealand dollar's topside progress," he said.
However, another break above US50c could see the kiwi test the US50.85c-US51c region in coming sessions, Mr Ritson said.
On the data front, investors will be eyeing the Reserve Bank's quarterly Monetary Policy Statement and cash rate review on Wednesday with interest.
ASB Bank said in a commentary that a no change decision on interest rates by central bank could trigger the New Zealand dollar well above US50c, and also propel it to new highs against the Australian dollar.
A Reuters poll last week showed private sector forecasts of no change in the Official Cash Rate (OCR) - the benchmark for home loans and business lending - had firmed to 84 per cent from the previous 77 per cent.
On the crosses at 5pm the kiwi was buying A88.53c, down on an intraday and multi-year high of A89c hit on Friday and Friday's close of A88.77c. The kiwi was also buying 0.4940 euro (0.4980 at Friday's close), 60.31 yen (60.34), 31.59 pence (31.64), and 0.7245 Swiss francs (0.7306).
The Australian dollar was buying $NZ1.1297 ($NZ1.1272)
The 90-day bank bill yield was unchanged at 5.90 per cent, the New Zealand dollar trade-weighted index was at 56.48 (56.65), and the monetary conditions index was at minus 164 (minus 150).
On the bond market the April 2004s were steady at 5.61 per cent, the November 2006s were unchanged at 5.93 per cent, the November 2011s were at 6.21 per cent (6.20), and the April 2013s were at 6.25 per cent (6.24).
- NZPA
<i>Currency:</i> Little action for receding Kiwi
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