The New Zealand dollar slumped in quiet trade as the antipodean currencies suffered from lack of interest.
At 5pm, the kiwi traded at 41.99USc, from 42.27c early yesterday morning. The aussie followed a similar track to finish in New Zealand at 51.95c from 52.19c at the open.
Positive retail sales and consumer confidence figures from the United States on Friday, indicating the juggernaut economy may be on the way to recovery, set the tone for the kiwi and aussie. The kiwi has lost half a US cent from its Friday night close of 42.51c.
Daniel Swasbrook of Deutsche Bank said the kiwi and aussie had drooped on a general lack of interest. "It drifted off on basically low volume trade," he said.
"It should be supported tonight at the 41.75/80c level.
"I think it'll get a little bit busier [today]. There's the merchandise trade figures, and obviously the [interest rate-setting] US Federal Market Open Committee and then our Monetary Policy Statement, so expect kiwi to pick up volumes going into that."
The US Fed's decision on whether it will cut interest rates for a fifth time this year will be known tomorrow morning (NZ time), not long before the Reserve Bank announces its own rates decision.
The Reserve Bank is widely tipped to cut the official cash rate by 25 basis points to 5.75 per cent.
- NZPA
<i>Currency:</i> Strong US data stems kiwi rally
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