Traders have increased their bets that the Reserve Bank of Australia will cut interest rates at its meeting next month after governor Glenn Stevens, who kept the cash rate unchanged at 2.25 per cent last month, said that further cuts were still "on the table".
Traders are now pricing in a 63 per cent chance that the RBA will reduce rates at its May 5 meeting, up from a 56 per cent chance yesterday, according to the Overnight Index Swap Curve.
A report out today is expected to show the Australian consumers price index rose 0.2 per cent in the first quarter for an annual rate of 1.3 per cent, according to a Reuters survey.
"NZD/AUD remained near historical highs ahead of the Australian Q1 CPI data, and a push for parity remains on the cards," ANZ Bank New Zealand chief economist Cameron Bagrie and senior FX strategist Sam Tuck said in a note.
"Weak Australia CPI figures today could see the parity corks popped."
The New Zealand dollar could trade between 98.80 Australian cents and A$1.005 today, ANZ said.
Should the kiwi reach A$1, it would be the first time since both currencies were floated in the 1980s.
The local currency touched a fresh high against the euro amid mounting concerns that Greece may exit the common currency as it fails to make progress in reaching agreement on its debt repayments.
Reports overnight said European Central Bank staff had proposed to increase the insurance the ECB would demand in return for emergency funding to Greek banks.
The kiwi touched a three month high of 51.79 British pence, and was trading at 51.39 pence at 8am from 51.37 pence yesterday.
The Bank of England minutes to its last meeting are scheduled to be released today.
The New Zealand dollar also touched a three month high of 92.10 yen, and was trading at 91.75 yen at 8am from 91.34 yen yesterday.
The trade-weighted index, the broad measure of the currency favoured by the Reserve Bank, touched 80.53, its highest level since July last year when it hit a record 82.03.
The TWI was at 80.17 at 8am from 80.04 yesterday.
