"At the local close yesterday, NZD crosses were all higher, but they have since moderated, and now look fairly flat for the day."
Japan's yen was the weakest currency in overnight trading, and the kiwi traded at 80.64 yen from 80.76 yen yesterday. The Bank of Japan's decided to keep its ultra-loose monetary policy unchanged last week, putting it out of step with other major central banks such as the Fed which are raising rates.
"If we're right in our view that US rates will track higher in the second half, then downward pressure in the yen should continue, given the BoJ's yield curve control policy which ensures widening global-Japan bond yield spreads," Wong said.
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Locally, investors will be watching the ANZ Roy Morgan consumer confidence survey at 1pm NZ time and the GlobalDairyTrade auction overnight, ahead of the Reserve Bank's latest policy review on Thursday.
The kiwi fell to 95.12 Australian cents from 95.50 cents yesterday and dropped to 4.9260 Chinese yuan from 4.9570 yuan.
It declined to 64.82 euro cents from 65.01 cents yesterday following French President Emmanuel Macron's parliamentary victory over the weekend and decreased to 56.74 British pence from 56.96 pence yesterday.