Sentiment is already nervous and uncertain in reaction to the escalating tensions between the US and China over trade and because of US President Donald Trump's constant tweeting and frequent contradictions.
"The behaviour this afternoon clearly specifically relates to the New Zealand dollar," says Peter Cavanaugh, the senior client advisor at Bancorp Treasury Services. "In the prevailing post-G7 and Trump-tweeting environment, the markets can be easily moved by a transaction that would normally only rate a blip on the radar."
Tim Kelleher, head of foreign exchange sales at Commonwealth Bank of Australia, says the kiwi has been under constant pressure for several days.
"Consistently, we're seeing buying of Aussie and selling of kiwi. It just keeps on drifting off."
Some of Trump's contradictions appear particularly inane such as saying senior Chinese officials had called US officials on the weekend requesting renewed talks while China said it knows nothing of such calls.
The New Zealand dollar was at 93.95 Australian cents from 94.18 cents, at 51.58 British pence from 51.76, at 57.12 euro cents from 57.37, at 67.02 yen from 67.27 and at 4.5324 Chinese yuan from 4.5554.
The New Zealand two-year swap rate edged down to a bid price of 0.9281 per cent from yesterday's close at 0.9432. The 10-year swap rate fell to 1.2050 per cent from 1.2175.