KEY POINTS:
The New Zealand dollar had a run at its recent post-float record high today but retreated beaten by the end of the session.
The kiwi reached US74.85c today, just below last Wednesday's US74.93c post-float peak. It was US74.43c by 5pm today from the US74.76c open.
Dealers are braced for a volatile week with the Reserve Bank's overnight cash rate review on Thursday looming.
Murray Hindley, head of foreign exchange at ANZ, said there could be some profit-taking ahead of Thursday.
But economists are still predicting a rate rise -- the BNZ said there is a 60 per cent chance it will be this week -- and that will help boost the currency.
Having settled into a tight band between US74.25c to US74.55c late last week the kiwi stepped up early on Saturday to around US74.75c.
That took it near Wednesday's post float high, with the ANZ bank today saying the NZ dollar was likely to test the US75c level this week.
ANZ said the NZ dollar's strong ending to last week was a result of positioning ahead of the Reserve Bank's interest rate review.
All the focus of local markets would be on the review, with the mid-week holiday for Anzac Day ensuring many people would want to be ready early for any potential interest rate hike. As such the kiwi should be supported on any dips.
At 5pm today the kiwi was buying A89.14c from the A89.24c open and A89.08c at 5pm on Friday.
The BNZ said the Australian US dollar cross was close to its target zone on technical basis but it was difficult to pick its peak. Should it break above US84.48c it could rise further. It was at US83.49c at 5pm in New Zealand today.
The greenback itself edged up against the yen at the end of last session, rebounding from two-year lows versus the euro as US stocks gained and traders squared their positions ahead of the weekend.
- NZPA
