The New Zealand dollar closed last week higher above 68c having initially witnessed lows of 0.6744 in the early Asian session. The rebound was sparked by disappointing US jobs data which reported their local economy added just 20,000 jobs in February, compared with estimates for a gain of 180,000 positions. However, the unemployment rate dropped to 3.8 percent in February and wages grew at the fastest pace in nearly a decade.
On the local front Manufacturing data released on Friday did little to excite the Kiwi, the volume of manufacturing sales rose 2 percent in the December quarter from the September quarter, led by a 4 percent boost in dairy and meat products manufacturing, but the value of those sales fell 0.5 percent, Statistics NZ says.
Looking ahead, there are no major reports out of New Zealand this week, so traders are not likely to change their minds about a future rate cut by the RBNZ. This is likely to limit any gains.