Since hitting recent highs yesterday morning, the New Zealand dollar has fallen away against the euro and yen, and remained range bound against the greenback.
At 8am today the kiwi was buying US79.65c, having peaked above US80c around 10am yesterday.
It was the first time the NZ dollar had crossed the US80c threshold since late last month and afterwards it moved around in a band between US79.35c and US79.90c.
Against the euro, the NZ dollar was at 0.5036 by 8am, having been at a two-week high near 0.51 yesterday morning.
The kiwi also fell from a four-week high against the Japanese currency near 82.10 yen to be at 81.36 yen by today's local open.
The ANZ Bank expected the NZ dollar to struggle to move above US80c again today.
Local data was hardly going to be supportive of any moves higher, but a backdrop of a weakening US dollar might be enough to see another failed attempt to spike higher, ANZ said.
The NZ dollar did firm against its Australian counterpart overnight, getting to A85.81c by 8am today from A85.59c at 5pm yesterday. The US dollar fell broadly overnight as traders snapped up the euro a day ahead of a European Central Bank policy meeting expected to deliver more tough inflation talk and signals the ECB is not ready to cut interest rates.
That would be in sharp contrast to the deteriorating economic picture in the United States, where minutes of the Federal Reserve's March policy meeting released this week showed that members believed a prolonged and severe economic downturn could not be ruled out.
Analysts said the minutes cemented expectations the Fed would lower its benchmark lending rate by at least 25 basis points later this month, further boosting the euro's yield advantage against the greenback.
The US dollar also fell sharply against the yen and the Swiss franc as US stocks declined on worries about the outlook for corporate profits and as crude prices rose to record highs.
