The New Zealand dollar matched the Australian unit's downward slide yesterday to end the local session at 42.26c, down from 42.39c at Monday's close.
"There was not too much interest really - a few bits and pieces going through in the low 42.20s. I think it was all based on the aussie - the aussie has come off again and is below 54USc," a currency dealer said.
The Australian dollar was at 53.94USc around 6 pm.
The aussie showed none of the confidence that saw it briefly touch 55.11USc last week. It spent the day struggling to hold its head above 54USc after the US dollar regained its composure in anticipation of a presidential win by Republican George Bush.
The kiwi followed suit, trading in a tight range of 42.18c to 42.34c in light trade.
"We have tried to hit it a couple of times, but no one really wants to push it through. So I think we could have a bit of a base building up again in the kiwi," the dealer said.
Last week's bid tone was missing, another dealer said. "We are starting to see a small chink in the kiwi's armour. Further weakness can be expected."
Apart from the uncertainty surrounding the US election, dealers are eyeing today's Australian growth data and Friday's local current account data for direction.
- NZPA
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