The New Zealand dollar was little changed, holding just above 73 US cents, ahead of a Reserve Bank statement that may project a higher track for interest rates than the steady-as-she-goes projection it gave three months ago.
The kiwi traded at 73.05 US cents as at 8am in Wellington from 73.04 cents late yesterday. The trade-weighted index sat at 79.50, well above the 76.4 average level the RBNZ forecast in its November monetary policy statement, from 79.52 yesterday.
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The central bank is widely expected to keep rates on hold Thursday but the statement and forecasts will be closely scrutinised for any hints about when it might move to lift interest rates. In November, governor Graeme Wheeler cut the official cash rate a quarter point to 1.75 per cent and forecast they would remain at that level until the end of 2019. Since then, figures have confirmed that inflation is back within the bank's target range but Wheeler is likely to be cautious about sending a signal to the market about raising interest rates for fear of driving the kiwi higher.