KEY POINTS:
The New Zealand dollar plumbed new six-year lows at the weekend against a US dollar, but was still holding above the US50c level.
The kiwi gained ground against other major currencies.
The NZ dollar was buying US50.85c - down slightly on its US50.89c level at 5pm Friday, after going as low as US50.50c over the weekend.
In a market briefing this morning, ANZ senior economist Khoon Goh predicted a bumpy road ahead for the kiwi with initial support at US50.50c likely to be tested.
"A holiday shortened week for NZ may see a reluctance to add to significant short positions later in the week," he said.
The greenback gained some strength from the US fourth quarter GDP - showing the economy had contracted by an annualised 3.8 per cent - not being as bad as some had feared.
With risk appetites again low, it seemed only a matter of time before the kiwi broke through the key US50c level, but it may not happen this week, Mr Goh said.
Against the Australian dollar the NZ dollar firmed to A79.83c at 8am from A78.99c at 5pm Friday.
Against the euro it was at 0.3972 from 0.3949 and it was at 45.73 Japanese yen at 45.73 from 45.48.
- NZPA