"With Yellen and Draghi both due to speak, markets will no doubt be sensitive to any discussion on upcoming policy withdrawal and what it could mean for the global liquidity cycle," said Philip Borkin, senior economist at ANZ Bank New Zealand. "More dovish language and inflation misses have seen markets pare back expectations for ongoing Fed hikes this year."
Locally today traders will be watching for travel and migration data for July to see whether net immigration, a key plank of the economy's growth, is continuing at record levels.
Meanwhile, the NZ Herald reported that an internal UMR poll for Labour showed the main opposition party had gained 1 point to 37 per cent while National was down 3 points to 40 per cent, while the Greens were steady on 8 per cent, indicating the election may not be a shew-in for National as some had been expecting.
"The general election, in just over 30 days, is shaping as extremely close, and this uncertainty could at the very least act as somewhat of a cap on NZD strength over the next few weeks," Borkin said.
The kiwi traded at 62.14 euro cents, little changed from 62.12 cents on Friday in New York. It was unchanged at 56.80 British pence and traded at 4.8764 yuan from 4.8758 yuan. The local currency slipped to 92.15 Australian cents from 92.25 cents and was little changed at 79.92 yen.
