The New Zealand dollar closed above US42c today and dealers said it appeared to be an uptrend.
"It feels bid. The market feels short," an ANZ Investment bank dealer said.
The dollar closed at US42.06c after opening at US41.87c. It closed at US42.02c yesterday.
The kiwi continues to make gains on the aussie finishing at A81.44 from A81.33c yesterday.
Entirely in line with expectations, the Reserve Bank of Australia today left interest rates unchanged.
Here, strong retail sales data today added to evidence of momentum in the domestic economy, although economists are divided whether that will dissuade the central bank from cutting rates next week.
June's monthly retail sales beat expectations to rise 1.2 percent on May, well ahead of economists' forecasts of a 0.4 percent monthly rise.
The US dollar strengthened against the euro which was down to US87.76c from yesterday's close here of US88.23c.
On other crosses, the kiwi traded at 51.63 yen (51.72 at yesterday's close), 29.68 pence (29.55), 0.9372 marks (0.9326), 0.7220 Swiss francs (0.7189) and 0.4791 euros (0.4768). The Australian dollar was at $NZ1.2279 from yesterday's close of $NZ1.229.
The trade-weighted index strengthened to 50.43 (50.22), and with the 90-day bills at 5.82 percent (5.79) the monetary conditions index tightened to minus 738 (minus 762).
Bonds yields rose a little. The March 2002s rose to 5.70 percent from 5.68 percent, the April 2004s rose to 6.25 percent (6.22), the November 2006s rose to 6.45 percent (6.42), and the November 2011s rose to 6.63 percent (6.62).
- NZPA
<i>Currency:</i> NZ dollar closes above US42c
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