The kiwi was mired in narrow and thin trading just below US40c yesterday with the market essentially on hold ahead of the US presidential elections tomorrow.
Traders said the already thin trading was likely to get thinner today because of Melbourne Cup Day in Australia.
The kiwi closed unchanged from Friday's close at 39.97USc after trading in just an eight-point range.
The New Zealand dollar did get a lift on in European trading on Friday following European Central Bank intervention that helped boost the kiwi to 40.37USc.
However, when the euro failed to kick on after stronger-than-expected US October wage growth data underscored the strength of the US economy, both the Australian dollar and the kiwi fell back to their lows.
Dealers are unclear how the New Zealand dollar will respond to the US election but the accepted wisdom is that the US dollar will strengthen more with the election of George Bush and hold steady or fall on an Al Gore victory.
"People seem to think that the Bush camp is very bullish for the US dollar with higher spending that should be great for the sharemarket," said an Auckland Deutsche Bank dealer.
"But it could all end in tears. He could easily spend so much and get inflation and spending up and push the hard-landing scenario.
"A Gore outcome is probably a more-of-the-same track and relatively neutral for the kiwi."
- NZPA
<i>Currency:</i> Thin trade leaves kiwi steady
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