Diving Asian equities, concerns of a slow-down in Chinese growth and heavy risk aversion set the stage for the New Zealand dollar's poor performance over the past day.
However, after slumping to US70.44c at 4.40am today, the kiwi rebounded to US70.89c at 9am.
"While worries about the global outlook have kept NZD/USD fragile so far this week, we continue to think that dips below 0.7000 will be short-lived," BNZ senior strategist Danica Hampton said."China's efforts to curb bank lending are aimed at preventing the economy from overheating, but investors fear slower Asian growth could de-rail the global recovery.
Asian equities fell heavily - the Nikkei fell 1.8% and the Shanghai index fell 2.4%.
"Risk aversion saw investors ditched growth sensitive currencies like NZD and AUD in favour of the relative safety of the USD and the JPY (despite the concerns about Japan's credit rating)."
Against other currencies, the kiwi also lost ground -- slipping to A78.76c, from A78.88c at 5pm yesterday against the aussie, 0.5036 from yesterday's 0.5040 against the euro, and to 63.62 from 63.96 yesterday against the yen.
Small gains were made against the pound, with the kiwi reaching 43.92p from yesterday's 43.84p.
The TWI was 64.78, from 64.95 at 5pm yesterday.
