NZD/USD traders today will eye 0.6375/0.6400 area as continued resistance following Wednesday evening’s sharp sell off, says BNZ Bank FX Strategist Danica Hampton. Adds NZD’s fortunes will ultimately mirror those of the major currencies; immediate support on day should be evident on any pullback to the 0.6275-0.6300 level, “though a breach would encourage those looking for a deeper pullback for the currency in the days ahead.” Pair last at 0.6333.

The dollar was back to its weakening ways against the euro Thursday after the ECB decided against cutting its key interest rates, which could keep yields on euro-based assets generally more attractive than those denominated in dollars. The US greenback had a brief rally against its European rivals Thursday morning amid rumors than UK prime minister Brown might resign. But the government quickly denied the reports as “nonsense,” and European currencies began to gain again. Also helping the euro were gains in US stock markets and oil prices, which reduced safe-haven demand for dollars. Thursday afternoon in New York, the euro was at $1.4183 from $1.4145 late Wednesday. The dollar was at Y96.56 from Y95.97, according to EBS. The euro was at Y136.95 from Y135.73, and the U.K. pound was at $1.6196 from $1.6283. The dollar was at CHF1.0690 from CHF1.0715 Wednesday.

The dollar is mixed in Europe Friday trading, almost unchanged against the single currency in the wake of Thursday’s ECB decision to keep interest rates on hold at 1%. Once again the big mover has been sterling, which has shed almost 2 cents on the day as political pressure piles up on Prime Minister Gordon Brown, who lost another cabinet minister overnight and looks like facing annihilation in the local and European elections. The euro fetches $1.4190, the pound is worth $1.6036 and the greenback fetches Y96.76.