"The bias in kiwi still looks lower (sentiment is weak) and major support levels are approaching, which if broken, could see more significant moves south," said Philip Borkin, senior economist at ANZ Bank New Zealand. "However, some caution is necessary given the pace of the move seen. Unease around domestic policy direction continues to weigh."
The kiwi traded at 89.23 Australian cents from 89.21 cents yesterday, when it rose against the Aussie following weaker-than-expected Australian consumer prices data.
In New Zealand, the trade balance for September is due out this morning and is expected to show the deficit narrowed to about $900 million from $1.2 billion.
The kiwi fell to 4.5569 yuan from 4.5754 yuan late yesterday. It declined to 58.16 euro cents from 58.59 cents and decreased to 51.82 British pence from 52.44 pence. The kiwi dropped to 78.09 yen from 78.48 yen yesterday.