The kiwi was little changed at 84.15 US cents at 8am in Wellington from 84.13 cents at 5pm yesterday.
The New Zealand dollar touched a new five-year high against the Australian dollar overnight ahead of a report today which is expected to show the Australian economy continues to lag New Zealand.
The kiwi hit 91.31 Australian cents overnight, and was trading at 90.86 cents at 8am in Wellington from
90.81 cents at 5pm yesterday. The local currency slipped to 82.70 US cents from 82.91 cents yesterday.
The New Zealand dollar has strengthened against its Australian counterpart as a strengthening local economy contrasts with a weaker Australian economy. Traders today will be eyeing a business confidence report in Australia for signs of continued weakness ahead of consumer sentiment survey tomorrow and November's employment report on Thursday.
"The NZD/AUD is where it is because the widening gap between the good news for New Zealand and the bad news for Australia," said Peter Cavanaugh, client advisor at Bancorp Treasury. "Business confidence dropped in October and there is a risk that November will show a continuation of the waning business confidence in Australia."
The NAB Bank survey on Australian business confidence for November is scheduled for release at 1:30pm New Zealand time.
