The New Zealand dollar held its gains against the greenback and could push slightly higher in the short term as risk appetite remains firm.
The kiwi traded at US70.22c at 5pm from US70.25c at 8:30am and US69.81c late yesterday. The trade-weighted index was at 73.53 from 73.57 yesterday.
The kiwi tracked improving global risk sentiment higher on stronger economic data in the US and the UK, and fading concerns about Italy's political crisis.
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"We are biased a little bit higher against the US, at least in the short-term ... risk appetite, in general, is a little better," said ANZ senior macro strategist Philip Borkin.
He said, however, it was unlikely to be a sustained move higher as "domestic data in New Zealand is looking a bit lackluster of late".
He also said that while markets were largely looking through trade issues at the moment, the upcoming meeting of leaders from the Group of Seven might create some volatility.
"There will no doubt be some uncomfortable discussions," he said.
G-7 leaders are slated to meet this coming weekend.
Overnight he said markets would be watching for the Global Dairy Trade auction, with dairy prices largely expected to be flat.
"If we get a surprise, the currency is likely to react."
The Kiwi dollar traded at A91.95c from A92.08c late yesterday after the Reserve Bank of Australia kept interest rates on hold at 1.5 per cent, where they have been since mid-2016.
It rose to 52.75p from 52.21p and gained to 60.08 euro cents from 59.78 euro cents. The kiwi jumped to 77.19 yen from 76.33 yen as risk sentiment improved and traded at 4.5008 yuan from 4.4721 yuan.
New Zealand's two-year swap rate increased 1 basis point from Friday to 2.22 per cent, while 10-year swaps rose three basis points to 3.14 per cent.