ECB governing council member and Bundesbank chief Jens Weidmann said negative interest rates were an option the bank could use to counter strong gains in the single currency while ECB governing council member Jozef Makuch said the central bank was preparing additional nonstandard measures to avoid a deflationary environment, including the possibility of adding liquidity.
Weighing on the euro, a German Ifo business sentiment index printed weaker than expected. The euro recovered some ground after ECB president Mario Draghi signalled the exchange rate is not a target for the ECB, and the euro's appreciation is due to a return of confidence.
In New Zealand today, the Reserve Bank will release housing market indicators including loan-to-value-ratio and mortgage approvals data. The government publishes its 2014 investment statement this afternoon. Finance Minister Bill English will give a speech at the Credit Suisse Asian Investment Conference in Hong Kong.
The New Zealand and Australian dollars are in demand by investors seeking yield, said ANZ's Tuck.
The kiwi was little changed at 93.52 Australian cents from 93.58 cents yesterday. Today, Australian Reserve Bank deputy governor Philip Lowe is scheduled to speak at the Centre for International Finance and Regulation Conference, while governor Glenn Stevens is due to speak at the Credit Suisse Asian Investment Conference in Hong Kong.
The RBA will release its latest Financial Stability Review at 1:30pm New Zealand time.
The New Zealand dollar advanced to 87.66 yen from 87.50 yen yesterday and was little changed at 51.85 British pence from 51.84 pence. The trade-weighted index gained to 80.04 from 79.92 yesterday.