The New Zealand dollar hit a two-month low against the greenback overnight but has bounced back this morning to be ahead of its level at the close of equities markets yesterday.

The kiwi was trading at US82.36 cents at 8am, up from US82.12c at 5pm yesterday. The Trade Weighted Index of major trading partners' currencies was at 75.70 this morning, up from 75.60 last night.

The United States S&P500 sharemarket index was recently up 0.71 points, or 0.05 per cent, to 1518.91.

Bank of New Zealand currency strategist Mike Jones said it was difficult to pinpoint exactly why the New Zealand dollar had rebounded but the fundamental differential between New Zealand and American interest rates had "barely budged" over the past fortnight.

"The combined negatives of slumping Chinese stock markets and surprisingly weak Australian building approvals data set the NZ dollar to US dollar on a downward course yesterday," Jones said.

"But, overnight, the down-trend ran out of puff.

"It's hard to pinpoint the exact catalyst for the NZ dollar bounce, although more encouraging US economic data and Warren Buffet's assertion that stocks still offer value may have helped.

"And ... solid NZ dollar demand from local corporate and real money accounts continues to support the currency on dips."

Meanwhile the Reserve Bank of Australia's latest interest rate announcement at 4.30pm [NZ time] will be of interest.

Jones said he and the market were expecting the rate to continue unchanged at 3 per cent.

"While the inflation outlook provides scope for the Reserve Bank of Australia to ease further, the data over the past month have not been sufficiently 'bad' to justify any change in policy," he said.

Australian retail sales and current account figures were also due out at 1:30pm (NZ time].

On the crosses the New Zealand dollar was recently trading at 80.96 Australian cents, up from A80.81c at 5pm yesterday, while it was at 80.96 Euro cents, up from 80.81 Euro cents yesterday.

The kiwi was trading at 76.89 Japanese yen, up from 76.69 yen yesterday, and at 54.56 British pence, down from 54.60p last night.

Jones predicted the kiwi dollar would range between US82.35c and US83c, and between A80.45c and A81.50c over the day on high volatility.

- © Fairfax NZ News