The New Zealand dollar hovered above the US70c level in thin trading ahead of a US public holiday tonight.
Dealers said investors had paused to assess the possible economic fallout from the recent credit market woes, leaving the kiwiin a tight trading range.
It closed at US70.34c, comparedwith US70.30c at Friday's close.
ANZ Investment Bank senior dealer Mark Elliott said the kiwi was staging a "technical rebound" after being sold off on Friday against a resurgent greenback.
That followed comments from Federal Reserve chairman Ben Bernanke who indicated there would be no bail-out for struggling investors or lenders, but said the US central bank would move to limit the effects of credit woes on the economy.
Today's trading was expected to be subdued with US markets closed for the Labour Day holiday.
The US dollar was little changed from late US trade at 116.00 yen and near US$1.3637, near a record high of US$1.3853 set in July against the single currency.
The Australian dollar was well bid, climbing 0.5 per cent to US82.18c, after economic reports bolstered hopes the central bank would keep raising interest rates.
That pushed the kiwi dollar backwards to A85.60c (A85.79c). The kiwi was fairly static against its other trading partners, trading at 81.59 yen (81.70 yen) and 0.5158 euro (0.5148 euro). The TWI (trade weighted index) was flat at 67.80.
In a light data week, the market was focussing on interest rates, with most economists picking a "hold" decision from the Reserve Bank's meeting on September 13.
