The New Zealand dollar partially recovered today after it had opened nearly 2 per cent lower following a slump in oil prices that helped revive the United States dollar.
The kiwi closed at US65.19c, up from its US64.69c opening, but well below yesterday's closing mark of US66.00c.
The Australian dollar was similarly down, closing at US70.70c (US71.18c).
ANZ Investment Bank chief dealer Murray Hindley said US name investors were liquidating long kiwi positions.
"There's a chance there could be more profit taking," Mr Hindley added.
He said the key for short-term direction would be US data out later this week including consumer confidence, durable goods sales and GDP.
Mr Hindley said the kiwi's fall looked more like a correction than a new trend. He said the kiwi appeared to have good support at US64.50, while US65.20c would be the first point of resistance. He noted the kiwi remained very strong on the other crosses.
BNZ currency strategist Sue Trinh said two factors contributed to the kiwi's fall, softening oil prices and position squaring against the greenback.
"The real theme of the market over the past 36 hours has been position squaring US dollar shorts," Ms Trinh said.
She said the kiwi dollar was the most vulnerable against the US unit because of its recent strength.
The euro closed here at US$1.2083 (US$1.2149 yesterday), while the greenback was fetching 109.52 yen (109.88).
The kiwi had been eyeing a 14-year high against the aussie, but by the close today was down to A92.20 from yesterday's A92.70c.
On other crosses, it was buying 0.5400 euro (0.5432), 36.34 British pence (36.51), 71.39 yen (72.53), and 0.8305 Swiss francs (0.8367).
The monetary conditions index was at plus 704 (754), while the trade weighted index was at 66.43 (67.09).
On the money and debt markets, 90-day bank bill yields were at 6.47 per cent (6.48), February 2006 bonds were at 6.20 per cent (6.21), July 2009s were at 6.23 per cent (6.22), and April 2013s were at 6.24 per cent (6.25).
- NZPA
<i>Currency:</i> NZ dollar loses ground as us dollar revives
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