The New Zealand dollar bounced around overnight, failing to make gains as equities rose strongly in Europe and the United States.
Around 8am the kiwi was buying US72.17c from US71.89c at 5pm, having moved in a band between about US71.60c and US72.40c overnight.
ANZ bank said that clearly the failure of the NZ dollar to surmount the US73c hurdle yesterday demonstrated underlying issues.
Price action had been somewhat confusing during the past week, perhaps a sign of an inflection point, ANZ said.
Equities had been very strong overnight across Europe and the US, helped by positive economic data and profit results.
But commodities were soft and the US dollar index did not see another move lower despite higher equities.
"These are not indications of a broad risk rally at all," ANZ said.
"Which may explain why the NZD is sitting out on the equity rally this time around."
No doubt the kiwi also continued to be weighed by yesterday's poor employment numbers.
"If the NZD is unable to rally when equities are performing, it does indicate that it is susceptible to moves lower if risk does get taken off," ANZ said.
The kiwi was up to 65.42 yen at 8am from 64.98 at 5pm, and little changed against the Australian dollar at A79.29c at the local open and against the European currency at 0.4854.
The trade weighted index was 64.78 at 8am from 64.64 at 5pm.
