The New Zealand dollar was little changed against the greenback ahead of US inflation data this week that will help determine the likelihood of a US rate hike next month.
The kiwi traded at 69.29 US cents as at 8am in Wellington from 69.28 cents in late New York trading on Friday. The trade-weighted index was at 73.58 from 73.51.
Traders have priced in more than an 80 per cent chance of a hike by the Federal Reserve at its meeting next month, which would be the third increase this year. Still, economists say October inflation figures on Wednesday in the US, expected to show core inflation of 1.7 per cent, will have a bearing on expectations.
"Views toward a December Fed hike will be tested with the October CPI important this week," said Con Williams, rural economist at ANZ Bank New Zealand, in a note. "A miss on core expectations, at 1.7 per cent, could cause some pause for thought."
The kiwi traded at 90.42 Australian cents from 90.59 cents on Friday in New York and up from 90.23 cents in Asia at the end of last week. Australia's coalition government has been reduced to a minority after Liberal MP John Alexander resigned after being found to have dual citizenship with the UK.
