The New Zealand dollar popped its head above 44USc yesterday on the back of increasingly negative sentiment towards the greenback.
About 5 pm, the kiwi was at 43.95c from 43.37c at Wednesday's close.
"It has been another strong day for the kiwi dollar," said BNZ chief currency dealer Mike Symonds.
Closing ranks with the aussie dollar - which broke new ground above 55USc - the kiwi continued its strong run of the past 48 hours, attracting positive interest from overseas investors.
"We have seen investor appetite, particularly from offshore clients, to buy the kiwi," Mr Symonds said.
"From a technical perspective the kiwi has had very limited respite in terms of any sort of retrace on the down side. All the technical indicators continue to favour a move up towards the 44.30-50c area."
Mr Symonds said the renewed interest in the kiwi and aussie related directly to a change in sentiment towards the US dollar.
"There are concerns that the US economy is weakening more sharply than some had anticipated.
"We are seeing currencies such as the euro which has been out of favour for months coming back into the limelight," he said.
Gross domestic product data released locally had little impact on the kiwi, having been largely factored into market expectations already.
Statistics New Zealand said GDP had expanded 0.7 per cent during the September quarter, up from a 1 per cent contraction in the June quarter.
Mr Symonds said the kiwi could reach the new 44.30-50c resistance levels going into the New Year.
"The way the currency is trading and the momentum that it has behind it at the moment - we have put on a good 1.25c in the space of 48 hours - then 44.30-50c is very achievable even in the short term.
"If this continued buying comes through in the next 24 hours, we may well overshoot those areas."
Mr Symonds said the kiwi could face some pull-backs as liquidity dried up over the holiday period, but overall he expected it to trade into the New Year looking quite strong.
NZPA
<i>Currency:</i> Surging kiwi settles within sight of 44USc
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