KEY POINTS:
The New Zealand dollar ended its local session near where it started as the market waited for news from foreign central bank meetings this week.
The kiwi had a good weekend, rising from a low point around US73.40c to around US73.75c mostly because of weaker than expected US jobs data was bad news for the US dollar.
The local currency opened its day at US73.66c and closed it at US73.69c.
BNZ said the kiwi lost ground overall last week and sentiment toward it became less bullish but the selling had primarily been profit-taking on long NZ dollar positions.
"Over the coming week monetary policy decisions will take centre stage in currency markets," BNZ said, with meetings by the Federal Reserve, European Central Bank and Bank of England scheduled this week.
"Overall, we suspect it will be a week of consolidation for the NZ/US dollar cross."
Rumours of impending Uradashi bond issues are likely to provide support for the NZ dollar on any dips.
The NZ dollar retreated after making gains against its Australian counterpart. Those gains came after Australia's central bank cut its forecast for underlying inflation this year to 2.5 percent, bang in the middle of its target band and suggesting a much-reduced risk of a rise in interest rates.
From A89.72c at 5pm on Friday, the kiwi slipped to A89.67c around 8am today and closed at A89.36c.
The NZ dollar was slightly weaker against the euro, slipping from 0.5425 at 5pm Friday to 0.5418 around 5pm today. The trade weighted index was little changed at 71.47 from 71.49 on Friday.
The Labour Cost Index released today was slightly weaker than expected, implying lower inflationary pressures and an easing of pressure in the labour market.
The Household Labour Force Survey for the March quarter on Thursday will provide more information on the condition of the labour market.
Rates:
5pm today 5pm Friday
NZ dlr/US dlr US73.69c US73.46c
NZ dlr/Aust dlr A89.36c A89.72c
NZ dlr/euro 0.5418 0.5425
NZ dlr/yen 88.36 88.39
NZ dlr/stg 36.92p 36.97p
NZ TWI 71.47 71.49
Australian dollar US82.45c US81.87c
Euro/US dollar 1.3599 1.3542
US dollar/yen 119.93 120.31
- NZPA