KEY POINTS:
The New Zealand dollar closed around where it opened today but put some moves in during the session ahead of key unemployment data tomorrow.
The NZ dollar was buying US51.12c at 5pm from US51.10c at 8am and US50.97c at 5pm yesterday. The currency touched a six-year low around US49.65c on Tuesday.
"We had a short squeeze in the New York session with positive US equity markets," said Murray Hindley, ANZ Institutional Bank chief of foreign exchange.
The squeeze on those who had previously sold the currency took the NZ dollar to US51.45c. Then the currency gave up its gains against a backdrop of weaker Australian economic data.
Traders are now looking ahead to the New Zealand Household Labour Force Survey tomorrow, which provides a picture of both employment and unemployment levels in the December quarter.
The domestic market is also contemplating a holiday weekend with Waitangi Day on Friday.
BNZ currency strategist Danica Hampton said strong gains in the Australian dollar against the greenback had provided some support for the kiwi against the United States currency on Tuesday night.
The NZ dollar slipped against its Australian counterpart to A78.90c at 5pm from A79.57c yesterday.
ANZ said a stronger Australian dollar should continue to see that cross rate ease lower, having failed to push above A80c on Tuesday.
The NZ dollar was little changed against the European and Japanese currencies at 0.3930 euro and 45.78 yen from 0.3951 and 45.77 yesterday.
The trade weighted index was down to 51.48 by 5pm from 51.61.
- NZPA
