The New Zealand dollar fell as better-than-expected US data dimmed the chance of more monetary stimulus from the Federal Reserve, and sapped demand for the kiwi.
The New Zealand dollar fell to 82 US cents at 8am this morning in Wellington from 82.54 cents on Friday at 5pm and was little-changed from 82.10 cents at the close of trading in New York.
Positive US data boosted investor confidence that the world's largest economy is on track to recover amid signs of growth in the labour market, reducing demand for risk-sensitive assets such as the kiwi dollar.
That damped the likelihood of the Fed printing money for a third time, a move that would further devalue the greenback and push the kiwi higher. The Dollar Index, a measure of the greenback against a basket of six currencies, climbed 0.7 per cent to 79.96 on Friday, holding near a two-month high.
"It would be unlikely the US would go to further quantitative easing and that is really why the New Zealand dollar headed lower," said Stu Ive, currency strategist at HiFX.