The New Zealand dollar appreciated on Monday, driven by stronger United States retail sales, talk of a rescue package for Italy and the re-election of the National Party in New Zealand.
The kiwi has jumped about a cent against its American counterpart to US75 cents.
But the dollar has lost about 15% against the Greenback since late July, and ANZ's head of market economics and strategy, Khoon Goh, says its direction is at the mercy of international events.
"Global growth is going to be volatile, there's still a massive debt overhang that needs to be worked through. So we're going to see currencies remaining very volatile for a while yet."