Official comments suggested that "policymaker's pessimistic expectations for the domestic economy have risen significantly," analysts at Guotai Junan Securities wrote in a note.
News reports about his tax-hike plan dented markets' risk appetite only briefly on Friday but analysts think there could be a bigger reaction if the plan becomes more concrete.
The safe-haven greenback got some respite from a pullback in world stocks from record highs as flare ups in coronavirus infections from India to Canada soured the outlook for a quick global recovery.
Prior to the market opening, the People's Bank of China (PBOC) set the midpoint rate at a three-week high of 6.5288 per dollar, 9 pips firmer than the previous fix of 6.5297.
"A key driver (for the Kiwi) is expected to be a continuation of the global recovery which should see commodity currencies outperform," Westpac analysts said in a note.
Shares of Lynas Rare Earths, however, gained 2.6% after reporting a better-than-expected profit for the half year, as prices of rare earths like neodymium and praseodymium (NdPr) rose.
