The New Zealand dollar was little changed ahead of tonight's GlobalDairyTrade auction where prices are expected to consolidate following four consecutive increases, after nearly six months of declines.
The kiwi was at 67.98 US cents at 8am in Wellington, from 67.97 cents at 5pm yesterday. The trade-weighted index was at 72.85 from 72.72 yesterday.
The local currency has gained 6 percent so far this month as analysts pull back expectations for interest rate hikes in the US and factor in better prospects for the local economy following the gains in dairy product prices, the country's largest commodity export. The kiwi may consolidate this week as the futures market suggests prices will stabilise at tonight's GDT auction, analysts said.
"The kiwi does remain under a bit of pressure at the moment ahead of the GDT auction tonight," said Stuart Ive, senior dealer, foreign exchange at OMF in Wellington. "We have seen the resurgence in the milk prices recently, but we expect tonight that the auction may actually come in flat, maybe even a small down."
OMF's Ive said traders may take the opportunity to bank profits after the local currency's recent rise.
