MARKET CLOSE: Major benchmarks clawed back most of their losses as the House of Representatives was reported to be sitting on Sunday.

The RBA's review of interest rates tomorrow in New Zealand's biggest export market is a major focus for the kiwi this week.

Weak US data and speculation Spain's credit rating may be cut to junk erodes investor appetite for higher-yielding, riskier assets.

The relatively low level of volatility has stoked appetite for higher yields. 

Renewed uncertainty in Europe draws offshore investors to New Zealand's relatively high yields and economic stability.

The trans-Tasman currencies are also hit by growing fears about Australia's economy.