The New Zealand dollar drew breath yesterday, closing firmer after wary trading within strict ranges, but it could nonetheless easily get another hammering this week.
It finished well above the fresh record low of 42.35USc struck last week. At the nominal 5 pm close the kiwi was at 43.63c from 43.54c on Friday, with people reluctant to test either end of the 43.46-60c range.
"It was a simple case of the calm after the storm," a currency dealer said.
"A few people got beaten up quite badly last week. They thought it was going to be a tight range day [yesterday], picked their range and traded that. No one wanted to stick their neck out at all."
The dealer said it was "eerily quiet."
"Of course it could easily ignite again this week. Our sentiment is it's got to get above 44c and stay there for a session or two before anybody even starts to think we're going to make a recovery back up to the 45c-46c level.
"All the fundamentals are still there that the kiwi doesn't look very well."
The Australian dollar finished quietly also, at 57.34USc from 57.22c on Friday.
- NZPA
<i>Currency:</i> Shell-shocked kiwi steadies
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