The New Zealand dollar was little changed after European Central Bank President Mario Draghi ruled out more spending on the region's debt and the death of North Korean dictator Kim Jong II sparked concern over security on the Korean peninsula.
The kiwi dollar rose to 75.82 US cents just after 8am, from 75.73 cents at 5pm yesterday.
President Draghi reiterated that the ECB founding treaty prevents it from increasing government-bond purchases to fight the region's debt crisis. European finance ministers are trying to negotiate channeling 200 billion euros in additional funding through the International Monetary Fund. The kiwi weakened after Kim's death and reports of missile test firings. His son Kim Jong-un is tipped to succeed him.
"The kiwi is expected to continue to trade heavily - there aren't a lot of positives to hang your hat on," said Richard Franulovich, a senior currency strategist at Westpac Bank in New York.
In New Zealand, traders are looking ahead to the balance of payments report for the third quarter due out tomorrow and gross domestic product on Thursday. The market is expecting GDP rose 0.6 per cent in the third quarter after eking out a gain of just 0.1 per cent three months earlier, according to a Reuters survey of 14 economists.
