The New Zealand dollar consolidated below recent peaks on Monday after a subdued read on underlying inflation dimmed chances of an early resumption of interest rate rises, while the Aussie held steady near a 29-year peak. The kiwi slipped to a low around $0.7919, after data showed inflation in the first quarter was relatively contained.
The currency was last at $0.7931 compared with $0.7986 in New York on Friday and analysts expect the kiwi to retreat further, having gained nearly 10 percent in the past month. The kiwi had earlier touched a peak of $0.8007, the highest since April 2008 and has gained more than 2 percent in the past week. The near-term support was now seen around $0.7910 and resistance at the intra-day high.
The kiwi also fell against other currencies, notably the neighbouring Aussie, which rose to NZ$1.3317. It was last at NZ$1.3301. Across the Tasman Sea, the Australian dollar paused at around $1.0559, after reaching $1.0579 in late New York trade on Friday, within a whisker of a 29-year peak high of $1.0585 struck on April 8, having gained 6 percent in the past month.
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