"The whole commodity sector has recovered in the last week - we're not out of the woods, but it's recovered, and obviously the dairy trade auction was positive overnight with long-dated futures pointing to US$3,500 a tonne which is good," said Tim Kelleher, head of institutional FX sales NZ at ASB Institutional in Auckland. "The kiwi's still a 'sell' on rallies, but those rallies could be up to 66 (US cents)."
The International Monetary Fund lowered its forecast for global growth to 3.1 percent from 3.3 percent, and noted risks were to the downside, which also weighed on the greenback.
The kiwi was little changed at 91.32 Australian cents form 91.28 cents yesterday when it slipped against its trans-Tasman counterpart after the Reserve Bank of Australia was more upbeat than investors were expecting when keeping the target cash rate at 2 percent.
The local currency rose to 4.1568 Chinese yuan from 4.1301 yuan yesterday, which is in the last day of its Golden Week holiday. The kiwi advanced to 78.57 yen from 78.27 yen yesterday, and was little changed at 57.94 euro cents from 58.11 cents. It traded at 42.94 British pence from 42.86 pence yesterday.
