Investors will also be taking profits as the New Zealand dollar has "been punching a little above its weight, given the fundamentals and the rate scenario", he said.
Data today from Barfoot & Thompson added to the view the heat is coming out of the housing market. According to the realtor, the number of houses sold in Auckland fell 5.7 per cent in January from a year earlier, even as prices edged lower, with the pipeline of available properties in the country's biggest city swelling to a six-year high.
New Zealand markets are closed tomorrow for the Waitangi Day public holiday. Ahead of the RBNZ, investors will be also be watching December quarter employment figures and the latest GlobalDairyTrade auction on Wednesday.
The local currency traded at 80.16 yen from 80.42 yen on Friday in New York and at A91.94c from A92.08c. It traded at 58.52 euro cents from 58.58 cents last week and was almost unchanged at 51.64p from 51.69p last week. The kiwi fell to 4.5914 Chinese yuan from 4.5991 yuan last week.
New Zealand's two-year swap rate rose 1 basis point to 2.17 per cent, while 10-year swaps rose 4 basis points to 3.31 per cent.