The New Zealand dollar softened against a resurgent US dollar, and an Australian dollar bolstered by increasing expectations of an interest rate rise.
Shortly after 5pm today, the kiwi was buying US65.58c and A87.36c from US66.01c and A87.84c at 5pm on Friday.
"It just opened a bit softer overnight, pressured by the US dollar strength we had through the Friday session on the back of upbeat consumer confidence data," Bank of New Zealand currency strategist Danica Hampton said.
The kiwi ranged between US65.53c and US65.76c during domestic trading. It was sold today against the Australian dollar, with momentum sellers and offshore funds lightening their positions, but a big decline was not on the cards, Ms Hampton said.
"We haven't got that much key data out this week and we're really going to struggle to see it significantly weaker without some sort of trigger."
The sole release of note this week is September's external migration figures on Friday.
New Zealand retail sales data released last Friday was bang on forecasts and left economists split on whether the Reserve Bank would raise interest rates later this month.
Ms Hampton picked a range overnight of US65.50c and US66.00c. The Australian dollar, and the Kiwi-Aussie cross was the pairing of note this week, she said.
"In Australia they've really changed their sentiment quite markedly in the last week or so, they've become much more hawkish on the RBA and the prospect of another hike."
The US dollar eyed a 10-month high against the yen after the upbeat US data last week further squashed expectations for the Federal Reserve to cut interest rates early next year.
The US dollar was also near a three-month peak against the euro and a six-month high versus the Swiss franc as the US currency's yield advantage is seen staying mostly intact in the months ahead.
Rates:
5.05pm today 5pm Friday
NZ dlr/US dlr US65.58c US66.01c
NZ dlr/Aust dlr A87.36c A87.84c
NZ dlr/euro 0.5244 0.5247
NZ dlr/yen 78.49 78.63
NZ dlr/stg 35.36p 35.42p
NZ TWI 66.51 66.73
Australian dollar US75.01c US75.14c
Euro/US dollar 1.2503 1.2669
US dollar/yen 119.70 119.19
- NZPA
<i>Currency:</i> Kiwi sold off against Aussie on rate expectations
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