The New Zealand dollar gained against the euro after European Central Bank president Mario Draghi signalled more easing in the euro region and as traders await US and kiwi retail sales and growth reports for both the EU and Japan.
The New Zealand dollar traded at 62.66 euro cents at 5pm in Wellington, little changed from the morning and up from 62.40 cents on Friday. The kiwi was at 86.24 US cents from 86.16 cents at 8am in Wellington and from 86.10 cents at the New York close on Friday. The trade-weighted index was little changed at 80.13.
Dragi said last week that Europe's recovery is "at a slow pace and it still remains fairly modest" after keeping the ECB's benchmark interest rate at a record low of 0.25 percent. Figures on Thursday are expected to show the euro area economy grew 0.4 percent in the first quarter, picking up pace from a 0.2 percent rate three months earlier. By contrast, Japan's economy probably sped to a 1.1 percent pace.
"The euro is clearly in focus after the ECB head warned that growth is a concern," said Alex Hill, head of dealing at HiFX.
Traders will be watching New Zealand first-quarter retail sales, scheduled for Wednesday and expected to show growth slowed to 0.5 percent from 1.2 percent, while US retail sales probably slowed to 0.4 percent in April from 1.1 percent in the previous month.
