Australian dollar weakness and local equity-related selling pushed the New Zealand currency down yesterday.
It finished at 45.67USc, but off the fortnight low of 45.42USc it hit overnight Wednesday.
Bank HSBC said the kiwi was likely to test 45USc soon as euro and Australian dollar softness persists.
However, while it lost ground it fared better than the aussie, which tends to set the direction. The aussie closed here sharply down at 57.62USc (58.10USc), allowing the kiwi to rally to to 79.25Ac (78.73Ac) on the cross.
Option-related selling hit the Australian unit and heavy selling on breaking the US58c level drove it to a seven-week low of 57.52USc.
Offshore, people continued to ignore the unit while exporters bought a little, importers sold a bit, and some equity-linked selling also took place.
HSBC said importers were targeting 79.50Ac to 80Ac for further selling.
The currency's quiet period persists, with daily market turnover down around half a billion dollars compared with a more usual $1 billion.
With no significant local data upcoming, most interest is on Federal Reserve chairman Alan Greenspan's speech to Congress tomorrow morning NZT.
The trade weighted index was flat at 51.53 (51.52) and 90-day bill yields were at 6.84 per cent (6.81).
The bond market was quiet and weaker, also awaiting Dr Greenspan's speech.
- NZPA
Soft aussie causes kiwi slide
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