KEY POINTS:
The NZ dollar put on a small show of strength today, ahead of a steady release of key data this week.
By 5pm, the kiwi was at US69.36c, up from US69.05c late on Friday. It was a touch weaker against the Australian dollar, however, at A88.31c from A88.50c on Friday.
ANZ chief foreign exchange dealer Murray Hindley said the New Zealand dollar remained reasonably well bid during the session.
"We've got key data releases this week, starting with the QSBO tomorrow, the CPI and FPI on Wednesday, and retail sales on Friday. It's going to be a heavy data week," Mr Hindley said.
"At this stage it looks probably supported at US68.90c. It's probably going to start running into some short-term resistance around US69.50c, but it's very much data-dependent this week."
Fourth quarter consumers price inflation (CPI) is expected to be unchanged on the previous quarter due to lower oil prices, according to a Reuters poll of economists, for an annual rate of 2.8 per cent.
That would bring inflation within the Reserve Bank of NZ's target band of 1-3 per cent, removing some of the pressure on the central bank to raise interest rates again. Inflation ran at 3.5 per cent for the year to the third quarter.
The market will also keep an eye on tomorrow's quarterly business survey by the NZ Institute of Economic Research, expected to show continued supply constraints and strong demand, the Bank of New Zealand said.
The Reserve Bank releases its next decision on interest rates on January 25.
In addition, markets were building up expectations for Reserve Bank of Australia interest rate action at its next meeting on February 7, which would see the NZ dollar move lower against the aussie.
The yen edged up from a 13-month low against the US dollar as expectations mounted that the Bank of Japan will lift interest rates at a policy meeting later this week, despite opposition from the government.
The greenback had initially rallied after the government said retail sales rose at their strongest pace since July last month, the key holiday shopping period.
US markets are closed for a public holiday on Monday.
Reuters currency rates:
5pm today 5pm Friday
NZ dlr/US dlr US69.36c US69.05c
NZ dlr/Aust dlr A88.31c A88.50c
NZ dlr/euro 0.5363 0.5351
NZ dlr/yen 83.40 83.29
NZ dlr/stg 35.37p 35.48p
NZ TWI 68.91 68.82
Australian dollar US78.52c US78.01c
Euro/US dollar 1.2936 1.2901
US dollar/yen 120.25 120.58
- NZPA