KEY POINTS:
The New Zealand dollar had a quiet start to the week, subdued partly by a public holiday in Japan.
Dealers said the kiwi traded in a narrow range against the greenback, closing at US71.40c from US71.19c on Friday.
Against the Australian dollar, it was a little stronger than its opening figure, closing at A84.70c compared with A84.88c.
"But with no data out of New Zealand, it's been a very quiet session," ANZ Investment Bank chief foreign exchange dealer Murray Hindley said. He was expecting a quiet night also.
The NZ dollar was also little changed against other major currencies, buying 0.5145 euros (0.5131 euros), and 82.23 yen (81.90).
The trade weighted index strengthened to 68.09 (67.95).
Offshore, the US dollar was also fairly flat against the Japanese currency at 115.15 yen while the euro fetched $1.3878, still within striking distance of a record high just above $1.39 set late last week.
Growing expectations of a US rate cut on Tuesday night has pressured the greenback against most other major currencies.
"With key US economic data printing softer and with inflation having eased in the past few months, the case for lowering the fed funds rate would be building even in the absence of the recent strains in the financial system," said Darren Gibbs, chief economist at Deutsche Bank.
"When these strains are factored in, the case for a 50 basis point cut appears quite persuasive."
The ANZ said that while interest rate cuts in the US would provide support for the kiwi as yield differentials increased, any further signs of credit worries, and the kiwi would once again face selling pressures as risk aversion dominated.
Reuters currency rates:
5pm today 5pm Friday
NZ dlr/US dlr US71.40c US71.19c
NZ dlr/Aust dlr A84.70 A84.88c
NZ dlr/euro 0.5145 0.5131
NZ dlr/yen 82.23 81.90
NZ dlr/stg 35.55p 35.25p
NZ TWI 68.09 67.95
Australian dollar US84.70c US83.88c
Euro/US dollar 1.3878 1.3875
US dollar/yen 115.15 115.06
- REUTERS