The New Zealand dollar held its ground against the greenback overnight, with improved US housing data and hints at further Chinese lending helping to spur investors' appetite for risk assets.
The kiwi recently traded at US760.19 cents, up from US76.10c at 5pm yesterday, while on the Trade Weighted Index of major trading partners' currencies it was last at 69.55, up from 69.36.
Global equity markets chalked up gains in the offshore session, with US investors returning to the market after the Memorial Day holiday with a modicum of gusto.
The upbeat sentiment was driven by data which showed that the US Housing Price Index chalked its first back-to-back monthly gain since 2010, and reports that China was stepping up pressure on its domestic banks to boost lending.
US investors were also late in reacting to reports that Greece's pro-euro zone New Democracy party was tipped to take the most votes in the June 17 election.
On Wall Street, the Standard & Poor's 500 Index rose 0.9 per cent to 1330.41 in afternoon trade, while in Europe the Stoxx 600 Index closed 0.8 per cent higher at 244.30.
Local currency traders will be waiting for the release of Australian retail sales data today for a read on the consumer sector across the Tasman which has been plagued by ongoing weakness which officials have tried to remedy by cutting interest rates.
"The kiwi is locked in a range and the Australian data will be key to breaking out of it," said Alex Sinton, a director of institutional FX at ANZ New Zealand. "The euro is still under pressure though and that will mute topside moves."
On the crosses, the kiwi was recently trading at 77.42 Australian cents, up from A77.29c yesterday, and it rose to 60.61 yen from 60.47 yen. It gained to 60.98 euro cents from 60.70 euro cents, and rose to 48.72 pence compared to 48.55 pence.
The kiwi may trade between a range of US75.70c and US76.30c, Sinton said.
http://www.stuff.co.nz/business/market-data/currencies/7013591/Kiwi-stable-as-US-investors-return
