The New Zealand dollar has climbed against its trans-Tasman counterpart after the Reserve Bank of Australia minutes for its last meeting showed an expectation of slower growth as the country's mining boom winds down.
The kiwi climbed as high as 92.54 Australian cents shortly after the release of the central bank's minutes and was trading at 92.48 cents at 5pm in Wellington, up from 92.25 at 8am and 92.31 cents at 5pm on Monday.
The kiwi fell to 86.58 US cents at 5pm, from 86.78 cents at 8am and 86.85 cents on Monday.
"The RBA released its minutes this afternoon. They didn't say much different about the currency, but there were some hints that they were slightly less positive on the economy," said Raiko Shareef, a currency strategist at Bank of New Zealand.
"The kiwi/Aussie has had a bit of a move, and that's largely driven off the weakness of the Aussie dollar."
In contrast, the Reserve Bank of New Zealand is hiking interest rates to curb inflationary pressures, while Thursday's gross domestic product figures are expected to show the economy growing at a 3.1 annual pace in the first quarter.
"From a global investors perspective New Zealand has pretty good appeal from the interest rate side and also combined with the fact the New Zealand dollar currency volatility is at an all time low," Mr Shareef said.
The kiwi slipped to 63.84 euro cents from 64.12 cents on Monday and to 88.26 yen from 88.34.
The trade-weighted index fell to 80.70 from 80.85.
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