The New Zealand dollar traded in a narrow range at lower levels today and it is continuing to reflect events offshore.
News that New Zealand's annual current account deficit reached its lowest level in more than two decades in the year to March, had little impact on trading as investors continued to focus on trends in equity markets and the daily set of the yuan rate.
The NZ dollar was US70.39c at 5pm from US70.49c at 8am and US70.79c at 5pm yesterday.
Global equity and commodity markets advanced after China said at the weekend that it would let the value of the yuan rise but there was confusion when it kept it at the same level on Monday.
"Global themes are dominant and the current theme at the moment is yuan fixing watching," said Imre Speizer, senior strategist at Westpac.
Mr Speizer said the yuan trades in a narrow band around the fix and investors were learning that the fix was influenced by the close on the previous day.
Over time the yuan would strengthen but Chinese authorities did not want it to be viewed as a one-way bet so the fix, or close, was weaker some days and stronger on other days.
Reuters reported that the a slide in the Australian dollar today paused after China set the yuan mid-point at 6.8102 per dollar, slightly higher than Tuesday's close at 6.8136.
BNZ strategist Mike Jones said global stock markets also snapped their 10-day winning streak overnight, weighing on risk appetite and growth-sensitive currencies such as the NZ dollar.
French bank Credit Agricole pushed back profit targets for its struggling Greek unit Emporiki and said it will take a 400 million euro ($NZ696.5m) write-down as Greece fights its debt load.
Overnight the NZ dollar climbed to its highest level against the euro in nearly three years, around 0.5775 euro, but by 5pm it had fallen to 0.5740 from 0.5753 at the same time yesterday.
It was at 63.70 yen from 64.39 yen yesterday.
The NZ dollar edged up against its trans-Tasman counterpart to A80.79c from A80.65c at 5pm yesterday, while the trade weighted index fell to 67.80 from 68.08 at 5pm yesterday.
