New Zealand business confidence fell for a second month, to the most pessimistic in six years, led by the agricultural sector and construction companies.

The dollar fell as the prospect of more easing by the Reserve Bank dented the appeal of the kiwi.

The dollar has rallied after what the markets perceived as a more optimistic view of the economy from Reserve Bank Governor Graeme Wheeler.

The dollar rose on speculation Wheeler may soften his language about an easing bias, and after stocks rebounded.

The kiwi dollar has risen to a six-and-a-half week high against the Aussie after a slump in Chinese equities markets.

Banks reduce mortgage rates on the back of Reserve's announcement - and it's likely the OCR will fall further.

Wheeler struck the right note in this morning's official cash rate announcement: appropriately dovish but not alarmist.

The New Zealand dollar has fallen ahead of the Reserve Bank's expected interest rate cut this morning.

NZIER's monetary policy shadow board favours a cut to the official cash rate of 25 basis points to 3 per cent tomorrow.

The dollar advanced as traders who had bet on the currency's decline took profits ahead of the tomorrow's interest rate decision.

The dollar has since consolidated after a slump in dairy prices and benign inflation stoked expectations of interest rate cuts.

Confidence fell as households turned sour on the economic outlook, although more remain positive rather about their personal situation.

Consumer prices rose as a weaker currency and higher global oil prices lifted the cost of petrol.

The dollar plummeted after whole milk powder fell more than expected in the GlobalDairyTrade auction overnight.

Wall Street moved lower overnight as Greek lawmakers prepared to vote on a proposal that would secure its third international bailout.

The dollar gained as an unexpected decline in US retail sales raised speculation of a delayed increase in US interest rates.

US retail sales slid 0.3pc in in June, the weakest since February, lowering expectations the Fed will hike interest rates in September.

The NZ dollar weakened as Greek agreement turned investor attention to US interest rate hikes, supporting greenback.

The lower kiwi will benefit exporters such as Delegat which counts the US as its largest market.

The dollar weakened as Eurozone leaders stepped up their demands for Greece reforms at meetings over the weekend.

The dollar was little changed as risk sentiment improved following a bounce in Chinese equities and new Greece proposals.