Dollar down ahead of Key speech

The New Zealand dollar opened locally a little softer ahead of Prime Minister John Key's opening statement to Parliament later today, in which he is set to partially unveil the Government's tax reform package.

Around 8am today the kiwi was buying US68.62c, having been able to push only as high as about US69.20c overnight from US68.68c at the local close.

ANZ bank said the sideways moves were the order of the day for the NZ dollar in the previous 24 trading hours as it remained within the boundaries of buying interests at US68.55c and selling interests at US69.25c.

While the direction of the currency may not hang on today's speeches at Parliament, they would be important without a doubt, ANZ said.

The NZ dollar was down to 0.5016 euro at the local open from 0.5034 at 5pm, and slipped to 61.26 yen from 61.32.

Against the Australian dollar, the kiwi was buying A79.11c at 8am from A79.36c at the local close, while the trade weighted index eased to 63.78 at the local open from 63.98 at 5pm.

BNZ Capital senior strategist Danica Hampton said there was little in the way of fresh global news overnight.

Concern about Europe's debt woes were still simmering away. While European policy makers were adamant the situation was under control, market participants were still sceptical, Ms Hampton said.

While there was a bit to keep an eye on locally, global sentiment and risk aversion would likely be the key influence on the NZ dollar again this week.