The New Zealand and Australian dollars were pressured against the US dollar on Monday as investors looked for safety amid concerns about debt problems in the eurozone and United States, although the kiwi was looking the stronger of the two.
The New Zealand dollar dipped to $0.8430, from $0.8465 in New York late on Friday, after briefly spiking nearly half a cent to $0.8490 on stronger-than-expected inflation data.
The prospect of NZ rates rising faster than neighbouring Australia, where rates are seen on hold in the near term, bolstered the kiwi against the Aussie, with the cross rate hitting an 11-month trough at $1.2521. It last traded at around NZ$1.2560.
This, combined with a stressed euro, put the Australian dollar on the defensive at $1.0603, around 0.4 percent lower. It hit a session low of $1.0583 on stop losses below $1.0600, according to traders. The Aussie is well-off a two-month high of $1.0807 struck last week.