The New Zealand dollar traded quietly in a tight range today.
BNZ currency strategist Sue Trinh said the kiwi was consolidating after its recent whippier moves over the past few sessions.
"We're still of the view that the downside remains the greater risk in the shorter term," she said.
The kiwi traded in a range of US58.29c to US58.50c closing at 5pm near its lows at US58.32c from US58.17c late yesterday, while the aussie was at US65.42c (US65.15c yesterday).
Ms Trinh expected the kiwi to trade in a range of US58.00c to US58.65c tonight in "sideways, rangy trading action with downside bias".
"We expect the aussie is going to be under further pressure and with the euro particularly under pressure you can't expect that the kiwi is going to hold up in such an environment."
By 5pm in Wellington the euro rose to US$1.1218, from US$1.1160 at 5pm yesterday, while the US dollar was at 118.06 yen (118.33).
On the crosses by 5pm the kiwi was buying A89.15c (A89.29c yesterday), 0.5199 euro (0.5212), 68.85 yen (68.83), 36.48 pence (36.56), and 0.8013 Swiss francs (0.8074).
The Australian dollar was at $1.1217 ($1.1199 yesterday).
The monetary conditions index was at plus 264 (265), the trade-weighted index was at 62.54 (62.55), and 90-day bank bill yields were at 5.08 per cent (5.10).
On the bond market, the February 2005 yields were at 4.92 per cent (4.91), November 2006s were at 5.12 per cent (5.11), and the November 2011s were at 5.57 per cent (5.59).
- NZPA
<i>Currency:</i> Quiet day's trading for kiwi
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