Investors are stepping back into equities and emerging markets whose recent sell-off drove money into safe-haven currencies. Traders will be eyeing the outcome of Turkey's central bank meeting today after Governor Erdem Basci implied he would hike interest rates to rein in inflation, following an increase by the Indian central bank.
"It's been extremely volatile the last two to three days so the market is probably going to take the opportunity to sit on its hands until they get some more clarification later in the week," said ASB's Kelleher.
In New Zealand today, Finance Minister Bill English will appear before a select committee about the country's half-year fiscal results and the Reserve Bank publishes data on low-equity home lending for December.
In the US, President Obama delivers his State of the Union address.
The New Zealand dollar was little changed at 94.16 Australian cents from 94.06 yesterday following an upbeat Australian business confidence report yesterday.
The local currency was little changed at 49.84 British pence from 49.79 pence yesterday after a report showed the UK economy expanded 0.7 per cent in the fourth quarter, as expected.
The kiwi was little changed at 60.48 euro cents and 84.99 yen.