Kiwi dollar loses overnight gains 

Source: NZPA / Ross SetfordNZ dollar vs US dollar

The New Zealand dollar pushed up towards US75 cents overnight but then fell away.

By 8am the kiwi was buying US74.40 cents, similar to its level at 5pm on Wednesday.

BNZ Capital strategist Mike Jones said currency markets struggled a little for direction overnight.

Early in the night the New Zealand dollar had marched higher on the back of firming commodity prices.

But later in the night everything went "a little soggy", Jones said. Renewed fears about the global outlook following weak United States housing market data shot equity markets into the red and saw commodity prices pare their gains.

With risk appetite under pressure the New Zealand dollar unwound the earlier gains against the greenback.

The US dollar slid against the euro overnight after notching its biggest rise in three weeks a day earlier, with fresh data doing little to alter the view that US interest rates will remain at record lows well into 2010.

Reports showing slightly higher-than-expected US inflation and a slide in new home construction helped keep the euro below $US1.50.

Most dealers say the US dollar's longer term declining trend is intact and noted that although the Federal Reserve may be in the early stages of withdrawing its huge stimulus measures, it is still nowhere near raising interest rates from record lows.

The NZ dollar eased lower to 0.4978 euro at 8am from 0.4998 at 5pm, while rising to 66.54 yen from 66.30.

Against the Australian dollar the kiwi was marginally higher at A80.23c by the local open. The trade weighted index was 66.25 at both 5pm and 8am.